Positive Technical Outlook for French CAC Index Amidst Dropping Inflation
11 May 2023
The dropping inflation gave a positive boost to stock traders yesterday and today, with many indices showing promising moves. One of them is the French CAC, which may not be the most popular index in the world but still has a very handsome technical situation.
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.