The CAC 40 (FR40) equity index price action remains bullish, supported by the prevailing longer-term uptrend. Recent intraday movements indicate sideways consolidation near the breakout level, which previously acted as resistance and has now become a new support zone.
Key Levels and Price Action
The critical trading level to watch is the 7900 level, representing the previous consolidation price range. A corrective pullback to this level, followed by a bullish bounce, could signal a continuation of the upward trend. In this scenario, the index may target the next upside resistance levels at 8160, 8300, and 8400 over the longer timeframe.
However, if the 7900 support level is decisively broken, confirmed by a daily close below this level, the bullish outlook would be invalidated. This breakdown could lead to a deeper retracement, with potential downside targets at the 7866 support level, followed by 7800 and 7733.
Conclusion
The overall sentiment remains bullish as long as the 7900 support level holds. A successful bounce from this zone could pave the way for continued upside momentum. Conversely, a confirmed break below 7900 would shift the outlook to bearish, suggesting a more significant corrective move. Traders should closely monitor daily closes around the critical support to gauge sentiment shifts.
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 Levels and Price Action
The critical trading level to watch is the 7900 level, representing the previous consolidation price range. A corrective pullback to this level, followed by a bullish bounce, could signal a continuation of the upward trend. In this scenario, the index may target the next upside resistance levels at 8160, 8300, and 8400 over the longer timeframe.
However, if the 7900 support level is decisively broken, confirmed by a daily close below this level, the bullish outlook would be invalidated. This breakdown could lead to a deeper retracement, with potential downside targets at the 7866 support level, followed by 7800 and 7733.
Conclusion
The overall sentiment remains bullish as long as the 7900 support level holds. A successful bounce from this zone could pave the way for continued upside momentum. Conversely, a confirmed break below 7900 would shift the outlook to bearish, suggesting a more significant corrective move. Traders should closely monitor daily closes around the critical support to gauge sentiment shifts.
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.
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.
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.