The CAC 40 has surged to new 2017 highs on Monday, as European markets rally on the conclusion of the first round of the 2017 French presidential election. Yesterday’s election results have Emmanuel Macron and Marine Le Pen moving forward to the final election round, which is to be held on May 7th. While the final election round is to be held in two weeks, traders should continue to monitor the CAC 40 and other European equities markets for increased volatility during this period.
Currently the CAC 40 Index is trading up a staggering 4.48% for Monday’s trading, with the Index putting in a new 2017 high at 5,362.30. Top leaders for the session include Societe Generale (+9.75%) and Credit Aricole (+9.49%). Top Losers for the Index include both Veolia Environnement (-1.76%) and LafarageHolcim (-1.09%).
CAC 40, Daily Chart with 10 Day EMA
Technically, the CAC 40 is trending higher in the short term. With today’s rally, the Index is now trading well above its 10 day EMA (exponential moving average), found at 5,122.99. Traders should monitor this value, as the line may be referenced as a point of support in an ongoing uptrend. Traders should note, that the CAC 40 is now challenging a critical point of daily resistance at 5,284.30. This point is denoted in the graph above as the April 2015 high, and a daily close above this point may suggest that the market is preparing for a larger bullish move. However if prices fail to close above 5,284.30, it may suggest that the market may be set to retraces some of today’s gains.
— Written by Walker, Analyst for DailyFX.com
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