A relief rally across all European markets is pushing Indices above resistance levels. The good mood might last a couple of more days but the overall trend is still down and the selling pressure could very well resume shortly. Gaps created this morning and fast approaching resistance levels are to watch out for.
CAC40 jumped this morning back above the resistance at 6,421 fast approaching the 0.618 Fibonacci retracement at around 6,630. A move higher to test the 0.764 retracement and the neckline from the Shoulder-Head-Shoulder pattern is not unlikely. 200 daily SMA around 6,750 will offer some resistance.
If CAC 40 closes the gap from this morning i.e. dropping below 6,355 bear trend will likely resume.