FTSE 100, DAX 40 and CAC 40 rally following first round of French legislative elections

FTSE100, DAX 40and CAC 40 Analysis and Charts

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FTSE 100 looks bid on first day of new quarter

The FTSE 100 rallies back to the 55-day simple moving average (SMA) at 8,226, having on Friday slid to 8,149 in line with a generally weaker European session ahead of this weekend’s first round of the French legislative elections. Since these seem to indicate that neither the far right nor the far left will attain an absolute majority, a relief rally is taking place, helping the FTSE 100 to regain lost ground as well.

A rise above Friday’s high at 8,239 would put last week’s high at 8,314 back on the plate.

FTSE 100 Daily Chart

DAX 40 trades at two-week highs

The DAX 40 has risen above the 55-day simple moving average (SMA) at 18,349 and trades in two-week highs while trying to reach the 18,500 region following the first round of the French elections. Further up beckons the May-to-July downtrend line at 18,614.

Potential slips should find support between the 24 and 26 June highs and the 55-day SMA at 18,367 to 18,350.

DAX 40 Daily Chart

of clients are net long.

of clients are net short.

Change in	Longs	Shorts	OI
Daily	19%	5%	9%
Weekly	-5%	-1%	-2%

CAC 40 opens around 2.5% higher post-first round of the French election

The French CAC 40 regained practically all of its last three days’ losses following the first round of the French legislative elections as a relief rally took the index to above its 200-day simple moving average (SMA) at 7,636, close to last week’s high at 7,725 which so far caps. A rise above 7,725 would push the May-to-July downtrend line at 7,849 to the fore.

Minor support below the 200-day simple moving average (SMA) at 7,636 sits at the 24 June low at 7,590.