Although I typically spend most of my time focusing on currencies, there are plenty of opportunities in other markets. One of those at the moment would be the French CAC 40. The market, like many others around the world, has recently pulled back a bit, and underperformed what people have become accustomed to.
With that being said, the recently pullback hasn’t been that deep. Yes, it may have felt like stocks were on the verge of falling apart, but the reality is that most indices were within 5% of all-time highs the whole time. With that in mind, I look at the CAC. Why the CAC? Because it tends to have a bit more in the way of momentum than the DAX.
Take a look at this daily chart below: It is an obvious long above 6800. These are the plays that I like, as the more obvious, the more momentum it is likely to have. Below the current price is support in the form of both the 50 day EMA, and the 6600 area. I think this next week could set up for a nice trade….with the 7000 level likely to be targeted in the short-term.