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CAC 40 (France) Elliott Wave Analysis - Trading Lounge Day Chart

CAC 40 (France) Wave Technical Analysis

Technical Analysis Overview

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Gray Wave 3
• Position: Orange Wave 1
• Next Lower Degree Direction: Orange Wave 2
• Wave Cancel Invalidation Level: 7,082.44

Analysis Overview

The CAC 40 (France) Elliott Wave Analysis for the day chart indicates a bullish trend, with the market currently in an impulsive phase. The wave structure is identified as Gray Wave 3, which is part of a larger upward movement within Orange Wave 1. This suggests that the market is in a strong upward phase, typical of an impulsive wave structure. The next anticipated lower-degree movement is Orange Wave 2, which is likely to develop after Gray Wave 3 is completed.

The analysis highlights that Gray Wave 4 appears to be completed, and the market is now moving through Gray Wave 5 of Orange Wave 1. This wave is expected to show strong upward momentum, in line with the impulsive nature of the trend. Traders should monitor the development of Gray Wave 5, as its completion will likely signal the start of Orange Wave 2, a corrective phase that could bring temporary pullbacks or consolidation before the trend resumes.

A key level to watch is the wave cancellation invalidation level at 7,082.44. If the price falls below this level, it would invalidate the current wave count, suggesting that a reassessment of the market structure is needed. This level serves as a critical support zone, and a break below it could indicate a potential trend reversal or wave structure shift.

Conclusion

The CAC 40 remains in a bullish trend, with Gray Wave 5 currently in play following the completion of Gray Wave 4. This impulsive movement is part of Orange Wave 1, with the next expected phase being Orange Wave 2. Traders should closely watch the completion of Gray Wave 5, as it will provide insights into the timing and direction of the next lower-degree wave. Understanding wave structures is essential for anticipating potential market movements and aligning trading strategies effectively.

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

CAC 40 (France) Wave Technical Analysis

Technical Analysis Overview

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange Wave 1
• Position: Navy Blue Wave 3
• Next Lower Degree Direction: Orange Wave 2
• Wave Cancel Invalidation Level: 7,082.44

Analysis Overview

The CAC 40 (France) Elliott Wave Analysis for the weekly chart indicates a bullish trend, with the market currently in an impulsive phase. The wave structure is identified as Orange Wave 1, which is part of a larger upward movement within Navy Blue Wave 3. This suggests that the market is in a strong upward phase, typical of an impulsive wave structure. The next anticipated lower-degree movement is Orange Wave 2, which is likely to develop after Orange Wave 1 is completed.

The analysis highlights that Navy Blue Wave 2 appears to be completed, and the market is now progressing through Orange Wave 1 of 3. This wave is expected to show strong upward momentum, in line with the impulsive nature of the trend. Traders should monitor the development of Orange Wave 1, as its completion will likely signal the start of Orange Wave 2, a corrective phase that could bring temporary pullbacks or consolidation before the trend resumes.

A critical level to watch is the wave cancellation invalidation level at 7,082.44. If the price falls below this level, it would invalidate the current wave count, requiring a reassessment of the market structure. This level serves as a key support zone, and a break below it could indicate a potential trend reversal or wave structure shift.

Conclusion

The CAC 40 remains in a bullish trend, with Orange Wave 1 currently in play following the completion of Navy Blue Wave 2. This impulsive movement is part of Navy Blue Wave 3, with the next expected phase being Orange Wave 2. Traders should closely watch the completion of Orange Wave 1, as it will provide insights into the timing and direction of the next lower-degree wave. Understanding wave structures is essential for anticipating potential market movements and aligning trading strategies effectively.

Technical Analyst: Malik Awais

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