CAC: fall slows

Current trend

Yesterday the French stock market index CAC 40 showed volatile trade and slightly fell on the trading session. The European stock market was moderately supported by statistical data from the US that, in light of Hilary Clinton victory at the presidential debates, brought back optimism to the markets. The Markit Services PMI in September grew from 51.0 to 51.1 points while Consumer Confidence increased from 101.8 to 104.1 points. Both indices significantly exceeded their forecasts.
Today attention needs to be paid to appearances by heads of the ECB and the Fed. Optimistic commentaries by Janet Yellen on the US economy prospects and further path of monetary policy tightening might substantially support the Dollar.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range is narrowing. MACD is falling and giving a sell signal. Stochastic is falling as well and approaching the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 4401.3 (local low), 4383.1, 4359.7 (local low), 4306.7 (16 September low), 4290.7
 (3 August low).
Resistance levels: 4424.2 (local high), 4451.3, 4486.5, 4516.5, 4528.3 (22 September high), 4568.1 (8 September high), 4581.2, 4614.0 (21 April high).

Trading tips

Long positions can be opened after the breakout of the level of 4451.5 (with the appropriate indicators signals) with targets at 4500.0, 4561.2 and stop-loss at 4415.0. Validity – 2-4 days.

Short positions can be opened after the breakdown of the level of 4400.0 with the target at 4322.0 and stop-loss at 4430.0. Validity – 2-4 days.