CAC 40, H4

On the four-hour chart, the leading French economic index, CAC 40, is moving within a downtrend, holding at 7580.9. A reversal at the support level of 7453.7, the price formed a Morning Star pattern, signaling an attempt to grow to 7729.9, and a consolidation above will allow it to reach the area of ​​7976.9–8158.9. Otherwise, the downward trend may continue to the support level of 7453.7 and ​​7278.5–6948.8.

CAC 40, D1

There are ambiguous signals on the daily chart. After reaching the support level of 7453.7, the quotes formed the reversal patterns Hammer and Bull Engulfing Pattern. However, after the correction to 7729.9, the candlestick Three Black Crows pattern formed, reflecting the possibility of the downward trend development. Most likely, the asset will return to 7729.9, and after the breakout, it may grow to 8158.9. Otherwise, the continuation of the downward trend to 6948.8 is likely.

Support and resistance

Resistance levels: 7729.9, 7976.9, 8158.9.

Support levels: 7453.7, 7278.5, 6948.8.

Trading tips

Long positions may be opened above 7729.9, with the targets at 7976.9, 8158.9. Stop loss — 7637.9. Implementation period: 9–12 days.

Short positions may be opened below 7453.7, with the targets at 7278.5, 6948.8. Stop loss — 7542.8.