CAC 40 (France) Elliott Wave Analysis: Trading Lounge Day Chart
CAC 40 (France) Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Gray Wave 2
Position: Orange Wave 3
Direction Next Higher Degrees: Gray Wave 3
Wave Cancel Invalidation Level: 7,031.04
The Elliott Wave analysis of the CAC 40 on the daily chart indicates the market is currently experiencing a corrective phase. This movement is identified as part of a counter-trend, specifically the formation of Gray Wave 2, which follows the completion of Gray Wave 1 in the larger corrective structure.
At present, Orange Wave 3 is developing, with Gray Wave 2 acting as a retracement within this broader upward trend. Following the completion of Gray Wave 1, Gray Wave 2 is currently forming, marking a temporary pullback before the market resumes its primary trend.
The next phase expected is the start of Gray Wave 3, anticipated to unfold after Gray Wave 2 finishes. This indicates that the corrective phase will likely conclude soon, setting the stage for the market to continue its upward momentum, with Gray Wave 3 initiating the next impulsive move in the sequence.
The wave invalidation level is set at 7,031.04. If the market drops below this threshold, the current Elliott Wave count would be invalidated, requiring a reevaluation of the analysis. As long as the price stays above this level, the corrective phase remains valid, and Gray Wave 2 should conclude before the market moves upwards with Gray Wave 3.
Summary:
The CAC 40 is currently in a corrective phase, marked by the formation of Gray Wave 2 after Gray Wave 1. The market is expected to continue this correction before resuming the upward movement, with Gray Wave 3 following. The invalidation level is set at 7,031.04.
CAC 40 (France) Elliott Wave Analysis: Trading Lounge Weekly Chart
CAC 40 (France) Index Technical Analysis
Function: Bullish Trend
Mode: Impulsive
Structure: Orange Wave 3
Position: Navy Blue Wave 3
Direction Next Lower Degrees: Orange Wave 4
Wave Cancel Invalidation Level: 7,031.04
The weekly Elliott Wave analysis of the CAC 40 highlights a strong bullish trend. The market is currently within Orange Wave 3, part of a larger impulsive wave sequence. This wave is now progressing as Navy Blue Wave 3, which signals a strong continuation of upward momentum.
According to the analysis, Orange Wave 2 has already completed, and Orange Wave 3 is now in progress. This wave is typically the most powerful in Elliott Wave theory, often driving prices significantly higher due to its strong impulsive nature.
Once Orange Wave 3 concludes, the market is expected to enter a corrective phase with Orange Wave 4, before the final impulsive move, Orange Wave 5, begins. However, for now, the bullish momentum is sustained as Orange Wave 3 continues to push the market higher.
The invalidation level for this wave count is also set at 7,031.04. If prices fall below this level, the current Elliott Wave structure would be invalid, necessitating a new wave count. As long as the price remains above this point, the bullish trend is projected to continue, with Orange Wave 3 driving the market upwards.
Summary:
The CAC 40 remains in a bullish trend, with Orange Wave 3 progressing after Orange Wave 2. The market is expected to continue its upward trajectory, supported by the strength of this impulsive wave. The invalidation level is set at 7,031.04.
Technical Analyst: Malik Awais
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