For more than three months now, the Cac 40 index (the French stock market benchmark) has been consolidating sideways above the solid static support located in the 7,100-7,050 point area, but has failed to extend upwards decisively.
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However, the technical situation is interesting given that various quantitative indicators are registering a marked contraction in volatility, a situation that often anticipates the start of major impulsive movements (Bollinger Bands, for example, are compressing around prices).
A first demonstration of force will arrive with the overcoming of the barrier, graphical and psychological, of the 7.500 points even if a new bullish signal of directional type will arrive only with the breakout of quota 7.580 (and will have a first target to 7.700 points).
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A daily close below 7,000 points will instead provide a dangerous bearish signal that can push prices towards the next graphic support positioned at 6,800 points (the last support able to prevent a bearish trend reversal).
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The following ETFs can be used to invest in the French CAC 40 stock market:
Xtrackers Cac 40, ISIN LU0322250985. This ETF has €175m in assets under management, physical replication of the underlying and a distribution policy (with dividends being distributed annually to investors). The total expense ratio (TER) is 0.20% per annum.
Amundi Cac 40, ISIN LU1681046931. This ETF has €567m in assets under management, physical replication of the underlying and adopts an accumulation policy (with dividends being reinvested within the fund. The total expense ratio (TER) is 0.25% per annum.
Lyxor Cac 40, ISIN FR0007052782. This ETF has €3,008m in assets under management, physical replication of the underlying and a distribution policy (with dividends distributed annually to investors. The total expense ratio (TER) is 0.25% per annum.
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