The Elliott Wave analysis of the CAC 40 index on the daily chart reflects a counter-trend corrective phase currently developing. This analysis highlights navy blue wave C as the central structure in focus, forming a part of the broader gray wave 2 within the overall count. According to the wave progression, wave B appears finished, and the index has entered wave C of this corrective movement.

From the daily chart view, traders gain a full picture of the index’s placement in the larger Elliott Wave sequence. The ongoing formation of wave C within wave 2 marks a temporary deviation from the main trend. Once wave C concludes, the market is expected to shift into navy blue wave 1 of 3, likely resuming the dominant upward trend.

This analysis underscores the importance of wave degree hierarchy, with navy blue wave C serving as a medium-term setup and as part of a broader corrective structure. Traders should remain alert for common corrective features, such as three-wave movements or periods of sideways trading, which frequently occur in counter-trend developments.

The current technical setup encourages market participants to wait for confirmation of wave C's completion before preparing for the next directional move. This corrective phase offers potential trading setups for short-term retracement plays, as well as for long-term entries in anticipation of a trend continuation.

CAC 40 (France) Wave technical analysis

Function: Counter-Trend.

Mode: Corrective.

Structure: Navy blue wave C.

Position: Gray wave 2.

Direction next higher degrees: Navy blue wave 1 of 3.

Details: Navy blue wave B appears complete; navy blue wave C of 2 is now progressing.

The Elliott Wave Analysis of the CAC 40 index on the weekly chart offers a broader counter-trend outlook for this key European market benchmark. The current structure in focus is navy blue wave C, forming a key segment of gray wave 2 within the larger wave framework. With wave B now considered complete, the index is advancing through wave C in this corrective sequence.

From a weekly perspective, this chart gives a comprehensive view of the CAC 40’s placement within the overarching Elliott Wave structure. The ongoing wave C correction inside gray wave 2 highlights a potential temporary deviation from the primary trend. Once this wave concludes, the index is expected to initiate navy blue wave 1 of 3, potentially resuming the dominant market direction.

This analysis highlights the importance of understanding wave degree hierarchies, with navy blue wave C acting as a medium-term opportunity and a core part of the larger corrective structure. Traders and investors alike should watch for typical corrective wave patterns, such as three-wave formations or periods of consolidation, which are common in counter-trend environments.

The setup particularly suits position traders, who should wait for a confirmed pattern conclusion before making any major directional assumptions. The weekly timeframe provides essential context for identifying short-term trades as well as long-term strategic entries in line with the broader trend forecast.

Technical analyst: Malik Awais.

CAC 40 (France) Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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