CAC stalls at previous highs


The French CAC index dropped on Tuesday and erased nearly half of the big Monday's rally. On Wednesday, it was trying to push higher again and was seen half a percent stronger during the EU session.

However, the overall situation doesn't look very positive as the index stopped the strong rally at previous highs, which now looks like a double top pattern. This pattern is still far from confirmed, but it might be a warning sign for bulls. 

Therefore, the key resistance for the near future seems to be at around 4,560 EUR, and if the index rises above this level, the medium-term uptrend could be confirmed, targeting previous highs near 4,720 EUR.

On the other hand, the short-term supports seem to be located near 4,400 EUR and afterward at previous lows 4,360 EUR. 

The overall outlook seems a bit neutral as the EU indices aren't as reliable as the US ones. The ECB is printing money, but the Fed is out printing everybody, so once again, the US indices could outperform the EU ones. 
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