Potential signal:
- I am buying on a break of the Thursday high, with a 50-point stop and a target of 8490.
The Parisian CAC continues to see buyers on dips, with the pattern playing itself out again on Thursday. With this, the market continues to see an attempt to break out over the longer-term.
CAC 40
The Parisian CAC saw a significant sell-off during the trading session on Thursday, reaching towards the 50-day EMA and then turning around to show signs of life, as we have seen strength come back into the market. Ultimately, the fact that we have turned around the way we have suggests this is a market that probably continues to see a lot of choppiness.
Luxury Sector Impact and Geopolitical Catalysts
The luxury sector, of course, is a major influence on the Parisian CAC, and that is something that you need to keep an eye on as well. The 8,400 euros level above seems to be a significant barrier, and if we can break above there, then the market would go, I believe, looking for the 8,500 euros level, where we had seen a significant barrier a couple of weeks ago. This will continue to be an area that we have to watch closely if we get there.
Top Regulated Brokers
Pullbacks at this point in time, I think, open up the possibility of turning things around and showing real weakness. Over the longer term, this is a market that I do believe breaks out to the upside after a lot of this noise, but we have a lot of external factors, such as the war in the Middle East, causing concerns about energy in the European Union, and may force the industrial base of the EU into a bit of a struggle that they weren't looking for. Overall, though, this is a market that's been in an uptrend for several months, despite the fact that there's been a couple of brutal pullbacks; I continue to buy dips here.
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