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.
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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