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FR 40 Technical Analysis - FR 40 Trading: 2020-03-13
CAC 40 Technical Analysis Summary
Below 3911.29
Sell Stop
Above 4956.83
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(200) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
CAC 40 Chart Analysis
CAC 40 Technical Analysis
On the daily timeframe FR40: D1 is falling below the 200-day moving average MA(200), which is declining itself. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 3911.29. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 4956.83. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (4956.83) without reaching the order (3911.29), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of Indices - CAC 40
Economic data from France have been deteriorating in recent weeks. Will the FR40 retreat continue?
French economic data in the last couple of weeks were mixed. The Q4 GDP final reading confirmed economy contracted 0.1% over quarter in the fourth quarter of 2019, following a 0.3% growth in the previous three months. Retail sales growth declined to 2.1% over year in January after 2.5% increase in previous month. However, the private sector activities expansion speeded up a bit: final reading of Markit’s composite PMI was revised up to 52 in February after 51.1 reading for previous month. At the same time manufacturing sector recorded a decline in activities, the first contraction in seven months due to decline in new orders attributed to discontinuation of Boeing 737 Max production and coronavirus disruptions. The coronavirus impact will likely last at least a few weeks as the outbreak was designated a global pandemic on Wednesday and the US restricted travel from Europe for 30 days. Deteriorating economic data are bearish for FR40.
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