CAC 40 future: 5046 should cap the upside – Natixis

Alan Lemangnen, Research Analyst at Natixis, suggests that since the daily stochastic remains bullish for CAC 40 future, they cannot rule out new rallies to a resistance at 5046 (daily parabolic).

Key Quotes

“Only a break of this barrier would suggest an extension of the upside channel to the 5067-5078 area (daily Bollinger upper band) and the 5137 threshold (weekly Bollinger upper band) but we don’t favor such a view. Indeed, the stabilization in the daily volatility is an obstacle to a sustained rally and we recommend being vigilant as the contract can choose to take a breather by retreating to 4968-4977 ahead of eyeing 4934-4940 and 4914 (9-week moving average). The resistances are at 5046, at 50675078, at 5090-5100 and at 5137.”