CAC 40


Published 6th February 2018 & validated 12th March 2018

The CAC 40 set up a bear trap. Odds are good that the interim top is not in yet. We see French stocks within a secular bull market. Nevertheless, they are approaching a cyclical correction.

CAC 40 Technical Analysis Short Term

Published 12th March 2018 

The CAC 40 has not shown a terminal Elliott wave pattern to the upside yet. Hence, an interim top is not in as of now. We are still questioning the exact label of the current irregular flat, however. It may be either a second wave of minor degree (our label up until today) or a fourth wave of intermediate degree (maybe even its A-wave). Both versions will have the same implication: The bottom of this irregular flat will be most likely the bottom of both patterns.

The post-crash rebound traced out an impulse to the upside. We forecast a short-term follow up to the upside. Our “Catch Of The Week” on the main page further elaborates our reasoning for that. 

CAC 40 Technical Analysis Medium Term

Published 19th January 2018.

The CAC 40 technical analysis reveals that the index currently trades around a 17y old trend line. It is a good target for the subsequent primary wave correction. A similar situation can be seen at the IBEX and Eurostoxx 50 indices. However, the IBEX has a lagging wave structure and currently trades below the long-term channel support/resistance.

Over a longer period, the CAC 40 traced out a triangle, just like a few other European indices, as well. The triangle either completed in 2011 or 2016 as labeled in the chart above. A swift continuation of the trend of higher degree is projected after triangles complete. In this case, it is to the upside, which means a bull market in French equities for at least a major part of the coming decade.

Technical Analysis