The French CAC40 bounces from the 200 week EMA

The 200 period exponential moving average or EMA, usually acts as a very good support or resistance zone, especially on the higher time frames. On the weekly chart of the CAC40 we can see that yesterday the index dropped to the 200 EMA (blue line), around the 4226, but it stalls there and bounces to the upside. This is a good example of how that moving average can act as a good support or resistance zone. Even in the past, we can see that it has already acted as support for the index. The relatively long shadow that the weekly candle is leaving behind is telling us that there is a probability of the CAC40 to keep retracing some more to the upside for next week. If the index keeps retracing to the upside, then the 55 week EMA (purple line) may act as resistance.