CAC 40 (France) Elliott Wave analysis – Day chart
Function: Counter Trend.
Mode: Corrective.
Structure: Orange Wave 2.
Position: Navy Blue Wave 1.
Direction next higher degrees: Orange Wave 3.
Details: Orange Wave 1 appears complete; Orange Wave 2 is in progress.
Wave cancel invalidation level: 6771.
The CAC 40 (France) daily chart analysis outlines a counter-trend structure, indicating the market is undergoing a corrective phase. The current wave structure is Orange Wave 2, forming part of Navy Blue Wave 1. This scenario suggests a temporary pullback within a broader upward trend.
Orange Wave 1 appears to have concluded, and Orange Wave 2 is now unfolding. This phase often retraces part of the previous gains and is typically followed by Orange Wave 3, which is expected to resume the primary trend direction. Traders should monitor for signals of Orange Wave 2 completion, which would set the stage for a potential bullish breakout.
The technical outlook shows range-bound or mild downward movements are likely during this corrective phase. The critical invalidation level to watch is 6771—dropping below this would invalidate the current count and demand a fresh wave analysis.
CAC 40 (France) Elliott Wave analysis – Weekly chart
Function: Bullish Trend.
Mode: Impulsive.
Structure: Navy Blue Wave 1.
Position: Gray Wave 3.
Direction next lower degrees: Navy Blue Wave 2.
Details: Gray Wave 2 appears complete; Navy Blue Wave 1 of Gray Wave 3 is active.
Wave cancel invalidation level: 6771.
The CAC 40 (France) weekly chart indicates a bullish trend, with the price in an impulsive phase. The wave structure is currently labeled Navy Blue Wave 1 within the broader context of Gray Wave 3. This setup implies the start of a significant upward movement in the index.
Gray Wave 2 appears to have concluded, and Navy Blue Wave 1 is now unfolding. This development usually signals a new impulse wave, potentially bringing continued price increases. The next movement to monitor is Navy Blue Wave 2, which typically introduces a corrective phase following the first impulsive move.
The invalidation level to observe is 6771. A decline below this point would challenge the current bullish wave count and require a new structural review. Until such a breach occurs, the current Elliott Wave structure supports a sustained upward trajectory.
CAC 40 (France) Elliott Wave technical review [Video]
Source: https://www.fxstreet.com/news/cac-40-france-elliott-wave-technical-review-video-202506120931