France’s CAC 40’s 2024 triple top could lead to further price correction if the 7500 level cannot be reclaimed.

Join me as I share my first analysis and trade plan for the CAC 40 index.

There are 3 high impact economic reports in Europe to keep an eye on this week.

Assessing CAC 40’s high timeframe candles:

Yearly Candle: A Red Long Upper Shadow with a Small Body

Monthly Candle: Previous close is a Red Body with a Slightly Longer Tail Wick current is a Red Spinning Top

Weekly Candle: Previous close is a Red Long-Legged Semi Doji current is a Red Body with a Longer Tail Wick

Daily Candle: Previous close is a Red Body with a Longer Tail Wick current is a Green Spinning

I will use the up wave that started in late October 2023 and ended last May as the retracement points of view to undermine France’s CAC 40 index next price trajectory.

We can see a clear triple monthly top this year in 3 consecutive months from March to May depicting the index’s struggle to contain the new record highs.

I like to use a bearish bridge connecting the last 2 consolidation ranges.

The first range is 7900 to 8260 and the second is 7460 to 7750.

The 50% fib level according to the referenced retracement points of view is where the crucial 7500 benchmark that if gets another valid rejection again will plunge the index lower again.

Based on these claims, I will short the CAC 40 index through selling the rally back to the flipped 7500 targeting the next key 7000 support level with a willing stop loss placed at 7800 only.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

The odds of another leg down is more likely for now.

All trade ideas I share are my own views and for my own trades only.

France’s CAC 40 Intraday Analysis and Trading Plan For July 30, 2024

Jul 30 2024

Entered +1.93%

Holding time 136d7hr

7406.31

Current price

7019.00

Take profit price

1