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.

CAC 40

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex Majors