CAC 40 (France) Wave technical analysis [Video]

CAC 40 (France) Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Navy blue wave 1.

Position: Gray wave 3.

Direction next higher degrees: Navy blue wave 1 (in progress).

Details: Gray wave 2 appears complete. Now, navy blue wave 1 of 3 is developing.

The CAC 40 daily chart signals a bullish trend forming through an impulsive Elliott Wave pattern. The index has completed gray wave 2 and transitioned into navy blue wave 1, which is part of the larger gray wave 3 structure. This shift marks the beginning of a new upward leg with the potential for strong price appreciation in the sessions ahead.

Navy blue wave 1 initiates this fresh impulse sequence. It's typically a foundation-setting phase that builds momentum slowly as market participants gain confidence in the trend. The successful conclusion of gray wave 2’s correction has paved the way for the current advance, which is likely to be gradual yet sustained as part of the emerging bullish narrative.

With gray wave 3 underway, stronger bullish action could follow, making the current wave 1 a key stage for early positioning. The daily chart highlights this structure clearly, indicating room for continued upside as the larger impulsive wave sequence takes shape.

Traders should track wave 1’s development for standard traits like increasing volume and consistent price growth. The analysis favors bullish positioning during this wave, while noting that wave 1 often grows more moderately compared to the explosive nature of later impulse waves. Technical signals and price formations will be essential for confirming the trend.

The next expected move will be navy blue wave 2 after the completion of wave 1. This correction should offer a buying opportunity before a potentially stronger wave 3 emerges. Close observation of price structure and momentum tools will help pinpoint this transition and validate the wave count as it progresses.

CAC 40 (France) Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Gray wave 3.

Position: Orange wave 1.

Direction next higher degrees: Gray wave 3 (in progress).

Details: Gray wave 2 appears complete. Now gray wave 3 is underway.

The CAC 40 weekly chart signals a robust bullish trend forming through an impulsive Elliott Wave structure. Having completed gray wave 2’s correction, the index has now entered gray wave 3, situated within the larger orange wave 1 advance. This marks the beginning of a highly dynamic phase, typically characterized by powerful price rallies and strong upward momentum.

Gray wave 3 is the most forceful component of Elliott Wave trends, often delivering the steepest gains in the direction of the prevailing trend. With wave 2 now behind, conditions are ideal for the continuation of this powerful bullish move. Wave 3 often surpasses wave 1 in both speed and magnitude, and current structure suggests further strength lies ahead before a corrective pullback sets in.

The weekly chart provides valuable context for this major move within a longer-term bullish sequence. The initiation of orange wave 1 at a higher degree supports the case for an even broader advance over time. Traders should watch gray wave 3 for classic signals such as increasing volume and sustained price climbs—hallmarks of a strong impulse leg.

The analysis recommends maintaining bullish positions during this phase while staying alert to signals of wave 3’s completion. Technical tools and pattern recognition will be crucial in confirming the wave's progression. Once wave 3 concludes, a gray wave 4 correction is expected, potentially offering a retracement opportunity before the next bullish wave resumes.

This current stage presents favorable conditions for trend-following strategies. Active monitoring of price movement and structure is essential to capitalize on this high-probability Elliott sequence phase.

Technical Analyst: Malik Awais.

CAC 40 (France) Wave technical analysis [Video]