Positive Technical Outlook for French CAC Index Amidst Dropping Inflation

Currently, the CAC is bouncing off a key horizontal support, which may be the start of a new bullish wave and a buy signal. The CAC is bouncing off the 7360 area (orange), which was a key resistance in January 2022 and February and March 2023. The CAC bounced off those levels with a double bottom formation (yellow), which makes it even stronger.

In addition, the price is currently breaking the mid-term dynamic downtrend line (black), which connects lower highs since the middle of August. The only thing missing for a full-fledged buy signal is the price closing a day above that resistance. The chances for that happening are quite high, so my view on this French index is positive.