French CAC index forming a nice triangle pattern.


The CAC index rose on Wednesday, along with other indices, but it will probably sell-off later in the day to close the bullish gap. At the last check, it was trading at around 5,050 EUR.

There is a unique triangle pattern on the charts, and since the medium to long-term trend seems bullish, this could be a continuation formation, in this case, bullish. The upper line, currently near 5,080 EUR, is forming a strong resistance. If this level is broken to the upside, we could see a quick rally toward June's highs of 5,230 EUR.

Alternatively, if another sell-off occurs, the support line of this triangle is near 4,960 EUR. If not held, the price could decline to June's lows near 4,865 EUR.

It would be great if the index could break from the recent consolidation phase to set a new trend, either to the upside or to the downside.

Sentiment seems positive due to Moderna's vaccine news, but the bullish gap in US indices will probably be closed, which could drag lower other indices as well. Volatility might pick up during the US session. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.