CAC 40 (France) Elliott Wave Analysis - TradingLounge Day Chart
CAC 40 (France) Elliott Wave Technical Analysis
CAC 40 Technical Details
Function: Bearish Trend
Mode: Impulsive
Structure: Gray Wave 3
Position: Orange Wave 3
Direction Next Higher Degrees: Gray Wave 4
Details: Gray wave 2 appears complete. Currently, gray wave 3 of orange wave 3 is developing.
Wave Cancel Invalidation Level: 7618.09
CAC 40 Analysis Overview
This Elliott Wave analysis for the CAC 40 Index focuses on the daily chart, highlighting a bearish trend. The market is in an impulsive mode, characterized by strong downward momentum.
- Primary Wave Structure: Gray wave 3, initiated after the completion of gray wave 2, indicates the continuation of the bearish phase.
- Current Position: Gray wave 3 is unfolding within orange wave 3. This stage marks the intensification of the downward trajectory.
- Future Projection: Following the completion of gray wave 3, a transition to gray wave 4, a corrective phase, is anticipated.
CAC 40 Key Level for Invalidation
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The invalidation level is set at 7618.09.
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If the index surpasses this threshold, the current wave count and bearish outlook will be invalidated.
- This level is crucial for risk management and confirms the ongoing bearish impulsive phase.
Summary
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Bearish Trend: The CAC 40 index remains in a bearish phase, with gray wave 3 actively developing as part of orange wave 3.
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Momentum: The completion of gray wave 2 marked the beginning of this impulsive decline.
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Validation: The bearish outlook remains intact below the invalidation level of 7618.09.
- Projection: Continued downward movement in gray wave 3 is expected, followed by a corrective gray wave 4 phase.
CAC 40 (France) Elliott Wave Analysis - TradingLounge Weekly Chart
CAC 40 (France) Elliott Wave Technical Analysis
CAC 40 Technical Overview
Function: Counter Trend
Mode: Impulsive
Structure: Orange Wave 3
Position: Navy Blue Wave C
Direction Next Higher Degrees: Orange Wave 4
Details: Orange wave 2 appears complete; orange wave 3 of 3 is currently developing.
Wave Cancel Invalidation Level: 7618.09
CAC 40 Analysis Overview
This weekly chart analysis uses Elliott Wave Theory to identify a counter-trend phase in the CAC 40 Index. The market remains in an impulsive mode, moving strongly within orange wave 3 as part of a broader corrective structure.
- Progression: The completion of orange wave 2 confirms the continuation of the current trend.
- Current Position: Navy blue wave C, a critical element of orange wave 3, is actively unfolding.
- Future Projection: Further downward movement is expected before transitioning to orange wave 4, which will serve as a corrective phase within the higher-degree wave structure.
CAC 40 Key Level for Invalidation
Summary
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Counter-Trend: The CAC 40 index is in a counter-trend phase, with orange wave 3 actively unfolding after orange wave 2 completion.
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Momentum: Navy blue wave C marks the ongoing impulsive movement within the structure.
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Validation: The counter-trend outlook holds as long as the index remains below the invalidation level of 7618.09.
- Projection: Further development in orange wave 3 is expected before transitioning into a corrective phase in orange wave 4.
Technical Analyst: Malik Awais
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