CAC 40 (France) Elliott Wave Analysis – Trading Lounge Daily Chart

CAC 40 (France) Wave Technical Analysis

Function: Bullish Trend

Mode: Impulsive

Structure: Gray Wave 5

Position: Orange Wave 1

Next Lower Degree Direction: Orange Wave 2

Wave Cancellation Level: 7,082.44

Analysis Details:

The CAC 40 Elliott Wave Analysis on the daily chart confirms a bullish trend, with the market currently in an impulsive phase, signaling strong upward momentum.

• The primary wave structure under focus is Gray Wave 5, forming part of a larger Elliott Wave cycle.
• Gray Wave 5 is positioned within Orange Wave 1, confirming its placement in the broader Elliott Wave framework.
• The previous corrective phase (Gray Wave 4) appears completed, allowing the market to shift into Gray Wave 5 of Orange Wave 1.
• As Wave 5 is usually the final phase in an impulsive sequence, further market gains may occur before a possible correction into Orange Wave 2.
• A critical invalidation point is 7,082.44—if the price moves below this level, the current wave structure becomes invalid, prompting traders to reevaluate their strategies.

Trading Considerations:

• Traders should monitor key price levels and anticipate potential market corrections post-Gray Wave 5 completion.
• The bullish wave structure aligns with the broader Elliott Wave cycle, supporting continued market expansion.
• Close observation of price movements and wave progressions enables traders to execute strategic trades based on the prevailing market conditions.

CAC 40 (France) Elliott Wave Analysis – Trading Lounge Weekly Chart

CAC 40 (France) Elliott Wave Technical Analysis

Function: Bullish Trend

Mode: Impulsive

Structure: Orange Wave 1

Position: Navy Blue Wave 3

Next Lower Degree Direction: Orange Wave 2

Wave Cancellation Level: 7,082.44

Analysis Details:

The CAC 40 Elliott Wave Analysis on the weekly chart confirms a bullish trend, with the market in an impulsive phase, reflecting strong upward momentum.

• The primary wave structure under analysis is Orange Wave 1, which is part of a larger Elliott Wave cycle.
• Orange Wave 1 is positioned within Navy Blue Wave 3, confirming its place in the broader Elliott Wave formation.
• The previous corrective phase (Orange Wave 2) appears completed, allowing the market to transition into Orange Wave 1 of Wave 3.
• Since Wave 3 often represents the strongest segment in an impulsive sequence, further market gains are anticipated before any major corrections.
• A critical invalidation point is set at 7,082.44—if the price drops below this threshold, the current wave structure becomes invalid, requiring traders to adjust their trading plans.

Trading Considerations:

• Traders should carefully monitor key price levels and prepare for potential market corrections after the completion of Orange Wave 1 of Wave 3.
• The bullish wave structure aligns with the larger Elliott Wave trend, supporting continued market growth.
• Tracking price movements and wave progressions helps traders to optimize trade execution based on current market dynamics.

Technical Analyst: Malik Awais

Source: Visit Tradinglounge.com and learn from the Experts. Join TradingLounge Here 

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