CAC40 resistance, level unbeaten year-to-date

CAC40 still in the red YTD. The index has not closed end-of-week above 2016 opening level at 4563.75. A major resistance with very attractive risk-reward ratio.

  1. The opening level CAC40 in 2016 is 4563.75.
  2. This is a major resistance level that defines CAC40 trading till date.
  3. Below this year, CAC40 stays in the red for the year.
  4. Till date, CAC40 has never closed a week at or above this level.
  5. This level has only been penetrated briefly in intra-week trading on 5 occasions.
  6. Best end of week close is 4545.70 (based on MT4 data from Axitrader; I realise other data feeds may have different outcomes).
  7. Together this is an impenetrable resistance zone.
  8. The risk-reward near to this level favours a short since a stop loss can be placed just on the other side of the fence but a move even to this month’s low would already be tremendously attractive.
  9. This is a resistance that has been in place more than 10 months – the longer the duration, the more significant it is.
CAC40 chart 2016 major resistance zone

CAC40 chart 2016 major resistance zone

These two posts on the use of OPEN PRICE as a gauge of market sentiment, support/resistance level.

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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