CAC40 INDEX - CAC 40 is Plunging Ahead French Presidential Election - 04/18/2017 (GMT)

The traders will turn their attention on the French presidential election on Sunday which will affect the French CAC 40 index. The price plummeted more than 1.2% during the last week after it hit a fresh high at 5153 resistance level and now is recording the fourth negative day in a row. On a medium-term basis, the index is developing in an ascending move since June 24th of 2016, supported by rising lows and rising highs.

From the technical point of view, the index is moving towards the 50-daily SMA to the downside which is moving near the 5000 strong psychological level. Moreover, a continuation of the bearish tendency could drive the price at 4950 support handle which overlaps with the rising trend line. The technical indicators are sloping to the downside confirming the recent bearish attitude. The MACD oscillator slipped below its trigger line and the RSI indicator, following its rebound on the 70 level, plunged in the negative territory.