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.
- The opening level CAC40 in 2016 is 4563.75.
- This is a major resistance level that defines CAC40 trading till date.
- Below this year, CAC40 stays in the red for the year.
- Till date, CAC40 has never closed a week at or above this level.
- This level has only been penetrated briefly in intra-week trading on 5 occasions.
- Best end of week close is 4545.70 (based on MT4 data from Axitrader; I realise other data feeds may have different outcomes).
- Together this is an impenetrable resistance zone.
- 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.
- This is a resistance that has been in place more than 10 months – the longer the duration, the more significant it is.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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