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
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Entry Level: 6,040.4 pts.
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Protective Stop: 6,109 pts.
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1st Profit Target: 5,962 pts.
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2nd Profit Target: 5,880.4 pts.
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3rd Profit Target: 5,785.6 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.
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