CAC 40 Index Futures Forecast December 5, 2012, Technical Analysis

Paris had a fairly strong showing during the Tuesday trading session, but failed at the €3600 level. The failure ended up forming a shooting star, and this of course signals that we could get a bit of a pullback. However, the €3500 level looks like it could provide a bit of support now that we have formed the cluster last week, and as such we think that any pullback will more than likely simply be a set up for the breakout this coming. As for selling, we could take a short-term sell position on a break of the Tuesday lows, but we do fully expect €3500 to be far too supportive for a selloff to take out.