CAC remains strong despite strong selling elsewhere

23/02/2021

For some reason, the French CAC 40 index was trading 0.5% stronger on Tuesday, despite other indices losing sharply.

At the time of writing, the CAC index stayed near its cycle highs at around 5,800 EUR.

There are two critical supports found on the chart - the first one should be at previous highs near 5,720 EUR, and as long as the CAC trades above that level, the short-term outlook seems bullish,

Another demand zone is seen at around 5,600 EUR, and the CAC must stay above this support to keep the medium-term outlook bullish.

Alternatively, the active resistance is expected at the current cycle highs of 5,800 EUR, and this level has already been held today. 

If the index jumps above 5,800 EUR, we could see a continuation toward the psychological zone at 6,000 EUR.
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