The CAC 40 index continues to display a bullish bias, underpinned by a well-established rising trend. Recent intraday price action indicates a breakout from consolidation, suggesting renewed upward momentum.
Key Technical Levels:
Support:
7770 – This level marks the prior consolidation zone and now serves as critical support.
7740 – Secondary support, guarding against deeper downside.
7700 – Key psychological and technical level; a breach would suggest trend weakness.
Resistance:
7940 – Immediate upside target from the breakout pattern.
7970 – Minor resistance within an extended bullish leg.
8000 – Major psychological resistance and potential profit-taking zone.
Trading Scenarios:
Bullish Scenario:
A corrective pullback toward the 7770 level, followed by a bullish reversal, would confirm support and potentially set the stage for an advance toward 7940, with scope to extend to 7970 and 8000 in the medium term.
Bearish Scenario:
A daily close below 7770 would invalidate the bullish breakout and suggest a short-term trend reversal. This would open the door to a retracement toward 7740, with extended downside risk to 7700.
Conclusion:
The CAC 40 remains technically bullish as long as price holds above the 7770 support level. Traders should watch for confirmation of support on pullbacks to position for a continuation higher. A decisive break below 7770, however, would shift sentiment to neutral-to-bearish, triggering a deeper correction.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Key Technical Levels:
Support:
7770 – This level marks the prior consolidation zone and now serves as critical support.
7740 – Secondary support, guarding against deeper downside.
7700 – Key psychological and technical level; a breach would suggest trend weakness.
Resistance:
7940 – Immediate upside target from the breakout pattern.
7970 – Minor resistance within an extended bullish leg.
8000 – Major psychological resistance and potential profit-taking zone.
Trading Scenarios:
Bullish Scenario:
A corrective pullback toward the 7770 level, followed by a bullish reversal, would confirm support and potentially set the stage for an advance toward 7940, with scope to extend to 7970 and 8000 in the medium term.
Bearish Scenario:
A daily close below 7770 would invalidate the bullish breakout and suggest a short-term trend reversal. This would open the door to a retracement toward 7740, with extended downside risk to 7700.
Conclusion:
The CAC 40 remains technically bullish as long as price holds above the 7770 support level. Traders should watch for confirmation of support on pullbacks to position for a continuation higher. A decisive break below 7770, however, would shift sentiment to neutral-to-bearish, triggering a deeper correction.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.