Ready to unwind?
France’s CAC 40 Index (CAC) appears to have completed its A-B-C rebound from the 2009 low to the recent peak
If this count in correct, then the index due to resume its long term downtrend to back below the 2009 lows.
There is no confirmation in terms of price movement yet 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.
few days could be critical for the CAC as well as European markets as the Euro Stoxx 50 also sports a similar pattern and
The bears could have been awaken from its long term slumber. (Read Report)
Source : CIMB Research
Labels: Technical Analysis