CAC 40 (France) Elliott Wave Analysis – Trading Lounge Day Chart
CAC 40 (France) Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Impulsive
Structure: Orange Wave 1
Position: Navy Blue Wave C
Next Lower Degree Direction: Orange Wave 1 (Started)
The CAC 40 Elliott Wave Analysis for the daily chart suggests that the market is undergoing a counter-trend movement based on Elliott Wave Theory, which identifies repetitive wave structures in price movements.
Currently, the market mode is impulsive, indicating a strong directional movement. The wave structure is identified as Orange Wave 1, which is part of a broader Navy Blue Wave C. This setup signifies that the market is in a corrective phase, and Orange Wave 1 within Navy Blue Wave C is now active.
The analysis further confirms that Navy Blue Wave B has likely completed, and the market has transitioned into Orange Wave 1 of Navy Blue Wave C. Generally, Navy Blue Wave C marks the final phase of a corrective cycle, and Orange Wave 1 signals the beginning of this move. Since the lower-degree Orange Wave 1 is in progress, the corrective structure is expected to continue.
Conclusion
The CAC 40 daily chart indicates an ongoing counter-trend movement, with Orange Wave 1 of Navy Blue Wave C currently in progress. The completion of Navy Blue Wave B and the activation of Orange Wave 1 confirm the beginning of the corrective phase.
Traders should closely monitor Orange Wave 1, as it will provide key insights into the strength and sustainability of this corrective movement. This Elliott Wave analysis presents a cautious outlook for the CAC 40 index, guiding traders in their market strategies. The ongoing impulsive wave structure suggests that the market is likely to maintain its corrective trend in the near term.
CAC 40 (France) Elliott Wave Analysis – Trading Lounge Weekly Chart
CAC 40 (France) Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Impulsive
Structure: Navy Blue Wave C
Position: Gray Wave 2
Next Lower Degree Direction: Navy Blue Wave C (Started)
The CAC 40 Elliott Wave Analysis for the weekly chart suggests a counter-trend movement, aligning with Elliott Wave Theory, which identifies recurring price patterns.
At present, the market mode remains impulsive, signifying a strong directional move. The price structure is labeled as Navy Blue Wave C, which is part of a broader corrective cycle, reinforcing that the market is still within a corrective phase, with Navy Blue Wave C actively unfolding.
This analysis highlights that Navy Blue Wave B has concluded, and Navy Blue Wave C has now commenced. In most Elliott Wave patterns, Wave C represents the final segment of a corrective cycle, often resulting in a sharp downward or sideways price movement, depending on market conditions. Given that Navy Blue Wave C has started, traders should expect the corrective trend to persist.
Conclusion
The CAC 40 weekly chart confirms a counter-trend phase, with Navy Blue Wave C currently in motion. The completion of Navy Blue Wave B and the activation of Navy Blue Wave C validate the continuation of the corrective trend.
Traders should closely track Navy Blue Wave C, as it will provide valuable insights into the market’s strength and the potential duration of this corrective move. This analysis presents a cautious outlook for CAC 40, offering guidance for strategic trading decisions.
Since this phase is critical for spotting reversals or confirming trend continuations, it is a key period for market participants. The impulsive wave structure suggests that CAC 40 is likely to maintain its corrective trajectory in the coming sessions.
Technical Analyst: Malik Awais
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