CAC 40 index in its 3-hour chart shows a bearish divergence, which represents an exhaustion signal of the current uptrend. In this post, we expose what to expect before to sell the French stock market.
The global leading indices show ending structures. This context makes us expect that a bearish sentiment could drag CAC 40 on leading stock markets.
In Elliott wave terms, the bearish divergence, warns us that CAC 40 runs in the fifth wave. Though this signal does not mean that the trend will reverse, the appearance represents an alert for bull traders.
The sell-side positioning will come if the price breaks and closes below the 5,818.75 pts. The first potential profit target is at 5,727.5 pts. The following bearish target is at 5,630.75 pts, and finally, at 5,458.75 pts.
The bearish scenario will be invalid if the price pierces but does not close below 5,818.75 pts; or if the French index soars above the 5,910.5 pts.
Trading Plan Summary
Entry Level: 5,818.75 pts.
Protective Stop: 5,910.50 pts.
1st Profit Target: 5,727.50 pts.
2nd Profit Target: 5,630.75 pts.
3rd Profit Target: 5,458.75 pts.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.