CAC 40 Could Make a New Bearish Leg
|The French index CAC 40, in its 2-hour chart, exhibits the two consecutive lows that the French index developed in the previous sessions. This sequence suggests the possibility of a new decline.
Currently, the price action shows advances in the form of a bounce from the 5,990.2 points. This penetration below the 6,000 psychological level could be indicative of potential weakness.
In this context, we must observe the reaction in the area between 6,040.4 and 6,071.2 points.
A sell-side positioning will trigger if the price of the CAC 40, in its interaction with the blue box area, closes below 6,040.4 pts. From this zone. As a conservative scenario, we expect a decline until 5,962 pts, at least. A possible bearish acceleration could drive the French index to visit the 5,880.4 pts and, even, the 5,785.6 as the final target.
Our protective stop, invalidating this bearish scenario, is located at 6,109 pts.
Trading Plan Summary
-
Entry Level: 6,040.4 pts.
-
Protective Stop: 6,109 pts.
-
1st Profit Target: 5,962 pts.
-
2nd Profit Target: 5,880.4 pts.
-
3rd Profit Target: 5,785.6 pts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.