CAC 40, H4

On the four-hour chart, the leading index of the French economy, CAC 40, continues to build a large graphic model Bear Flag, with the target at 7100.3. In addition, the pressure on the asset is signaled by the candlestick patterns Three Black Crows and Bear Marubozu at the levels of 7709.2–7614.1. After reaching the key support level of 7462.6, the “bulls” partially recovered their lost positions and returned to 7614.1. However, the appearance of the candlestick analysis patterns Doji reflects the uncertainty in the market and signals a probable continuation of the downward trend, and after consolidation, the quotes are below the support level of 7462.6 and may reach 7100.3. In case of growth and reaching the resistance level of 7709.2, long positions, with the targets of 7902.2–8080.4 are relevant.

CAC 40, D1

On the daily chart, a large price Double Top pattern with potential targets at 7614.1 and 7275.5 is building. In addition, the negative dynamics of the trading instrument are reinforced by the candlestick patterns Bear Marubozu and Falling Three Methods steps at levels 7614.1–7560.6. Most likely, the quotes will continue to decline to the support level of 7462.6, after overcoming which it is possible to reach the area of ​​7275.5–7100.3.

Support and resistance

Support levels: 7462.6, 7275.5, 7100.3.

Resistance levels: 7709.2, 7902.2, 8080.4.

Trading tips

Short positions may be opened below 7462.6, with the targets 7275.5, and 7100.3. Stop loss — 7560.6. Implementation period: 7 days or more.

Long positions may be opened above 7709.2, with the targets 7902.2, 8080.4. Stop loss — 7614.1.