France’s CAC 40 Index (CAC) appears to have completed its A-B-C rebound from the 2009 low to the recent peak of 5,283.71.
If this count in correct, then the index due to resume its long term downtrend to back below the 2009 lows.but a swift fall below the recent swing low 4,783 would boost the idea that the next leg down is underway.
The recent fall back into the LT uptrend channel could indicate a throw-over i.e. weak upside momentum.
The series of 1s and 2s on the daily chart could potentially kick start the next wave of selling in CAC. Barring a move back above the 5,193 high, odds would favour lower prices in the days and weeks ahead.
The next few days could be critical for the CAC as well as European markets as the Euro Stoxx 50 also sports a similar pattern and wave count.
The bears could have been awaken from its long term slumber. (Read Report)
Source : CIMB Research