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
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