The negative sentiment that grips the French CAC 40 index seem to be pretty evident as the downward trend line drawn on the graph below (Purple Line) pretty much summarizes what the index has been trying to achieve for the past couple of weeks.
Looking at the trend line, it is evident that it has been holding the index from any movement higher and that had led to an overwhelming display of strength on the trendline’s behalf. Moreover, the RSI indicator for the index had been on the same wavelength as the trendline. The indicator has been trying to break above the 60-level which in turn would be a break above the trendline meaning that the negative momentum on the index would have been lessened considerably.
The index has been getting denied on every turn whenever it tries to break above the trendline as evident by the plethora of attempts bouncing right back down with every attempt. What is more, if the index manages to break above the trendline and in direct relation the 60-level on the RSI indicator, that would prompt the index to have some bullish pressure as tries to cement the consolidation mode at 5,040 which is the current support-turned-resistance.
On the other side of the tracks, as long as the index remains below the trend line, the momentum will remain negative. However, the most recent support is seen at the 4,890 which means that the negative momentum could be on hold until a break below the mentioned level.
Currently, the best performers on the CAC 40 are Saint-Gobain (+1.46% at €32.01); Peugeot (+1.18% at €20.57); and STMicroelectronics (+0.99% at €12.22). The worst performers are Valeo (-21.02% at €23.59); Technip FMC (-5.27% at €23.19); and Arcelor Mittal (-3.49% at €21.29).