CAC 40 Index forecast for the week of December 3, 2012, Technical Analysis

The CAC 40 had a slightly positive week, but shied away from breaking out above the €3600 level yet again. Ultimately, it does look like a market wants to break out to the upside, but we need to get over that level to get the proper bullish signal in order to start buying on the longer time frame charts. With this in mind, we will wait until at least a daily close above €3600, and will not do anything to the upside until then. As for selling, anything below the lows of the session over the previous we would be enough to get us to start selling and aiming for the €3350 level.