 Good afternoon and welcome to the chart of the week video with me David Madden Today's date is Thursday the 19th of September 2019 and the time has just gone 12 30 for this summer time This week's chart of the week is the CAG 40 or as we call it on our platform here at CMC Markets to France 40 We're looking here at a longer dated chart and we can see that after a number of years The the French equity market has been a solid upward trend And we can see despite the fact that there's some pretty severe sell-offs August into May and July into August this year The market has bounced back and we're potentially coming up to a fairly significant level this region here in around 5657 on a few occasions this meant that this region acted as as a resistance So it's possible that the area might act as resistance again or if you do see a break above it That that could be quite significant and we could see the market press on higher from here Now if you do look Very much in the longer term view and we see what with where the the market was the last time it was above that metric It was quite some time ago. It we're talking in terms of time frame. We haven't been north Close we haven't been north to say five thousand up around the kind of five thousand seven hundred mark since the back end of 2007 they're giving the indication of how long ago the last time the market was say north of say 5700 and if you do have a fairly size of break from from the 11 talked about in around 5700 apologies in around in around down this area here We could be looking heading up to five thousand seven hundred or potentially this zone here in around five thousand eight hundred and eighty two To look at look at the chart on a shorter term basis We can take a look at the other price actions that we do see any move to the downside We could potentially identify some areas of possible support So we're gonna test in this area here in around five thousand six hundred fifty seven But if you do see a move to the downside, we might find support come from this area here in around five thousand five hundred and thirty seven I move below that Could take us back towards the 50 moving average this blue line here, and that comes into play at five thousand four hundred and seventy six And even if you go south of that this yellow line here The word of the moving average isn't too far behind that at five thousand four hundred and fifty We can see that in the not too distant past both of those metrics Acted as support and the metric is actually a support in the past It makes it more likely it would do so in the future It's only really if you have a size of a break below the world a moving average Okay, then we actually begin to think you know what maybe the market isn't going to crack this this area up here I'm maybe we could be heading back down towards the bottom end of the range a Good potentially head back down toward this red line here We used a tour to moving average and that comes to play at fifty to eighty four We can see in a few in the last few months the market hasn't spent a whole lot of time south of five thousand two or so We could potentially be looking at sort of a range here between The market being a kind of box in between say in around five thousand two hundred to the downside and it around five thousand six hundred and sixty or so to the upside If you are going to be trading The cat forty it is worth your while keeping an eye on what's going on on other markets So for example, if you take a look at the at the the tax over in Germany We can get a feel for what's going on over there And even though the tax isn't an isn't in as strong as a shape as it's French counterpart It's still in pretty good shape, you know, it was only it was only at the back end of last week where we had kind of multi multi Multi-week highs market has come back ever so slightly But we could be we're still very much in the kind of wider upper trend I want to come to the tax and tell theory tells us that the averages must confirm each other and if the French market is Tatering on a multi-year high No, you would like to see other eurozone economy markets perform well also And we're not too far away from kind of multi-month highs, which isn't obviously as as impressive But nonetheless The cat's clearly an upper trend and the tax is clearly an upper trend And therefore while both markets are moving to the upside you can become more confident that markets are going to continue in that particular direction Now it is worth pointing out that the kind of market economic Climate has changed ever so slightly has cooled down we've heard from the ECB Last week though, they didn't they weren't as dovish as as some traders were expecting We're from the Fed last night. They were as dovish as traders were expecting and in relation to the US China trades to Asian things have cooled down. So We could see volatility and the kind of connecting markets are Cooled down a little and as it is worth pointing out that the US child trade relations are on on the mend For the time being and keep in mind some of the largest sell-offs we've seen In recent weeks and months have actually been on the back of those particular fears Before I go if you have any comments on this video or any of the other videos We've made here at CMC markets, please feel free to near a view on cookies. Thank you very much