The CAC 40 continues to exhibit bearish sentiment, in line with the prevailing downtrend. Recent price action has confirmed a break below a key consolidation support zone, reinforcing the downside bias.
Key Technical Levels:
Resistance Zone: 7000 (short-term), 7186 (major resistance / former consolidation zone)
Support Levels: 6760 (initial target), 6630 (intermediate), 6474 (longer-term support)
Bearish Scenario:
The loss of support at 7186 has shifted the bias to the downside. A potential oversold rebound may occur, but unless price reclaims and holds above 7000 on a daily closing basis, rallies are likely to face selling pressure. A bearish rejection at 7186, if retested, would confirm the continuation of the downtrend toward the stated support levels.
Bullish Alternative:
A confirmed breakout above 7000, with a daily close above this level, would challenge the current bearish outlook. In such a case, the index may regain bullish momentum, opening the path for a retest of 7186, followed by 7290.
Conclusion:
The technical outlook for the CAC 40 remains bearish unless a decisive breakout above 7000 occurs. Traders should watch for rejection patterns near 7000–7186 for potential short entries, while a daily close above 7000 would be a key trigger for a trend reversal and a shift in sentiment.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Key Technical Levels:
Resistance Zone: 7000 (short-term), 7186 (major resistance / former consolidation zone)
Support Levels: 6760 (initial target), 6630 (intermediate), 6474 (longer-term support)
Bearish Scenario:
The loss of support at 7186 has shifted the bias to the downside. A potential oversold rebound may occur, but unless price reclaims and holds above 7000 on a daily closing basis, rallies are likely to face selling pressure. A bearish rejection at 7186, if retested, would confirm the continuation of the downtrend toward the stated support levels.
Bullish Alternative:
A confirmed breakout above 7000, with a daily close above this level, would challenge the current bearish outlook. In such a case, the index may regain bullish momentum, opening the path for a retest of 7186, followed by 7290.
Conclusion:
The technical outlook for the CAC 40 remains bearish unless a decisive breakout above 7000 occurs. Traders should watch for rejection patterns near 7000–7186 for potential short entries, while a daily close above 7000 would be a key trigger for a trend reversal and a shift in sentiment.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.