Technical Review | Tech analysis points to new bearish phase for CAC 40 as it runs out of steam around 7,481.78

• Upper Bollinger Band® currently at 7,576

While CAC 40 is on a 10 day stint of flat trade, Todays session shows some improvement: CAC 40 gained 0.56% and is now trading at 7,441.

The index has been trending positively for about 2 months. CAC hit a significant low of 15.42 around 8 months ago, but has since recovered 47,900%.

Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,576, thereby suggesting that CAC is becoming overvalued.

Overall, looking at the technical analysis landscape, it seems CAC 40 is likely to reverse course and start pointing down in the short term.

Fundamental indicators – Euro Zone Consumer Price Index came out at 7%, while a consensus of analysts was expecting 7%.

Other markets are also showing gains as Nikkei added 1.6% to its value, now trading at 30,574. DAX gained 1.1% and is now trading at 16,127. KOSPI Composite Index is up 0.83%.

Upcoming fundamentals: Euro Zone ECB President Lagarde speech will be released tomorrow at 19:00 UTC.