CAC 40 Could Make a New Bearish Leg

EagleFX Team EagleFX

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.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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