- The trading session on Thursday has been a bit positive for indices around the world as we continue to see a lot of momentum thrown around the markets in various direction.
- The CAC 40 in Paris is an index that's been very noisy for some time, and I think it makes a certain amount of sense that we continue to see a more sideways chop in this market as traders try to sort out where we are going in the longer term.
- For the trading range, I have roughly drawn out a box with 7,425 euro in the bottom offering support and 7,750 euro in the top offering resistance.
This is a market that is very technically driven as the Parisian CAC is often playing second fiddle to the DAX and some of the other bigger indices around the world. Ultimately, the French index is a large one in the EU, but on a global stage, it is a bit smaller when it comes to where people put their money.
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It's also worth noting that the 50 day EMA and the 200 day EMA indicators both are very flat. So this is about as dead sideways as it gets. That being said, if you are a range bound trader, this could end up being the market for you. You could come into the market and perhaps do something to the effect of a range bound trading system based on the stochastic oscillator, which currently is right in the middle, but there are the occasional signals that get fired off that you can use.
Whether or not we break out to the upside, or the downside remains to be seen, but it looks as if the markets really just don't know what to do with themselves. So, a trader that has the ability to go back and forth on shorter term charts probably finds this type of environment very appealing.
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