CAC 40 Index Forecast – Dips Remain Supported
- The CAC 40 index recently traded higher and moved above the 5,200 level before facing resistance.
- There was a break above a key bearish trend line with resistance at 5,100 on the 4-hours chart of CAC 40 Index.
- Today in the Euro Zone, the French Consumer Price Index for August 2017 was released by INSEE.
- The forecast was slated for a rise of 1%, and the actual was 1% (YoY) (EU norm).
The CAC 40 index started a nice upside move from the 4,952 low and moved above the 5K mark. Buyers were in control and they even managed a close above 5,050 and the 100 simple moving average (H4).
Moreover, there was a clear break of a key bearish trend line with resistance at 5,100 on the 4-hours chart. It opened the doors for more gains and pushed the index above 5,200.
A high was formed at 5,226 where sellers emerged. At the moment, a short-term consolidation/correction is underway. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the 4,992 low to 5,226 high.
However, there is a major support near 5,150 and a bullish trend line on the same chart, which is also above the 100 simple moving average (H4).
The overall bias is positive, and any major dips towards the 5,150 and 5,130 remain supported in the near term.
Today in the Euro Zone, the French Consumer Price Index for August 2017 was released by INSEE. The forecast was slated for an increase of 0.6% in the CPI compared with the previous month.
However, the actual result was similar to the forecast, but more than the last -0.4%. Looking at the yearly change, the French CPI rose 1%, similar to the forecast of 1% and the last 1%.
Considering the Manufactured products prices, there was an increase of +1.1% in metropolitan France, and the clothing and footwear prices were up by 6.3%, less than the last +8.7%.
SPX 500 Index Forecast – Buy Near 2,480?
- The SPX 500 Index climbed further higher and moved above the 2,480 level.
- There is a major connecting bullish trend line with support at 2,480 forming on the 4-hours chart of the SPX 500 Index.
- Today, the US Consumer Price Index for August 2017 will be released by the US Bureau of Labor Statistics, which is forecasted to increase by 1.8% (YoY), more than the last +1.7%.
In the last analysis, we discussed how buying with a break above the 2,470 resistance can be considered for the SPX 500 Index. There was a break above the mentioned 2,470 level and the index climbed towards the 2,500 level.
A high was formed at 2,499, and later the index started a short-term correction. It has not yet tested the 23.6% Fib retracement level of the recent wave from the 2,459 low to 2,499 high.
Moreover, there is a crucial bullish trend line with support at 2,480 forming on the 4-hours chart, which can be seen as a good buy zone.
Therefore, once again buying dips near 2,480 can be considered or with a break above 2,500.
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