CAC 40 Future: Upside potential appears limited - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that since the daily indicators have turned around for CAC 40 Future and as the daily volatility has narrowed, upside potential appears limited and they don’t expect a return above the resistance at 5334 (daily Bollinger moving average). 

Key Quotes

“We favor a deeper pullback to 5230-5243 (daily Bollinger lower band). We’ll be vigilant as a break below these supports area would provide fresh bearish momentum to 5187-5204 (50-day moving average) ahead of 5135-5150 (Fibonacci extensions).  The resistances are at 5297, at 5334, at 5410 and at 5452-5463.”