The CAC 40 has popped the barrier and has managed to cover the small gap formed back at the beginning of the month. After dropping towards the low of 5,220, the index continued to move back upwards towards the mentioned gap, covering it and breaking above the 5,340-resistance level that seemed to have kept the index at bay.

After breaking above the resistance, the index shows no signs of slowing down as it tries to attack the next resistance level, which is merely 10 points away at 5,350. The 5,350 represents the 61.8% Fibonacci retracement between the high of September 4 at 5,429 and the low on September 7 at 5,223. Breaking abovesaid level would signify extreme bullishness on the index as it continues to trade higher eyeing the 200-Hour Moving Average (Red Line) at 5,370.

What’s more to consider on this index, would be the fact that the RSI is starting to reach the 80-level as it prints near the 73-mark as of this writing. This means that the index might be hitting a ceiling at the 5,350 making it harder for it to continue higher, however, it does not completely remove the possibility of a surprise move higher.

The CAC 40 Spot Index is currently up 0.70% so far this year. It currently trades 5.5% below its 52-week high of 5,657.44 reached on May 21 and 6.2% above its 52-week low of 5,038.12 reached on March 28. Of the 40 constituents of the index, 29 have risen, 10 have fallen, and 1 has remained relatively unchanged.

The CAC 40 attempts to break above the 5,350
The CAC 40 attempts to break above the 5,350

Currently, the best performers on the CAC 40 are Michelin (+2.83% at €101.8); ST Microelectronics (+2.59% at €15.65); and Renault (+1.96% at €71.88). The worst performers are Technip FMC (-2.21% at €25.66); Hermes International (-1.30% at €547.6); and Publicis Groupe (-1.24% at €51.00).