CAC confirms the bearish breakdown

A couple of days ago, we informed you about a potentially bearish pattern in the French CAC index. It looks like this pattern was correct, and a bearish breakdown occurred, with the index dropping each day since then.

On Tuesday, the CAC index was down 0.3% during the US session, hovering near 4,900 EUR.

As previously mentioned, the index made a false bullish breakout from the consolidation triangle but failed to catch a bullish momentum. Instead, it reversed course and dropped below the support line of this triangle. That could be considered a stronger bearish signal. 

Moreover, the price dropped below the important uptrend line from March lows, suggesting the recent uptrend might be over.

Bears should be in charge over the next days and rallies could be sold. The first resistance is near 5,000 EUR and afterward at around 5,180 EUR.

Bears could be targeting 4,900 EUR (which was already tested today), and if this support is not held, the price might drop toward 4,860 EUR.
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