CAC 40 - watch this Pause Before to go Long
|The French index CAC 40, in its 4-hour chart, consolidates the latest upward impulsive movement that is developing since December 03, from the 5,696.20 pts zone. The price action shows the French index inside an ascending channel that could lead to CAC 40 to visit fresh highs.
A retracement could allow us to take a position in the direction of the long-term bullish trend. The CAC 40 index could react upward in the zone of the 5,946.25 points.
Once the trade triggers, the French index could lead us to see the 6011.25 points as the first bullish target.
If the price gains momentum and extends its bullish movement, CAC 40 could reach 6,070.50 points and even to soars up to 6,140.50 points. This last profit target level coincides with the upper line of the mid-term upward channel.
The bullish scenario will be invalid if the French index price plummets below 5,864.50 points.
Trading Plan Summary
Entry Level: 5,946.25 pts.
Protective Stop: 5,864.50 pts.
1st Profit Target: 6,011.25 pts.
2nd Profit Target: 6,070.50 pts.
3rd Profit Target: 6,140.50 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.