CAC 40: Upward trend of the index and a deeper correction to the horizontal support. Sold market. The price is in consolidation between 4372-4274. The consolidation allows us to buy in the lower shoulder and sell around 4372, but with mandatory stops because the consolidation could easily become a flag with the potential for reduction of the price or double bottom on 4432.
Whilst the consolidation applies, it is a good idea to trade, a breach over of these levels will signal for a position. Crossing obove 4372 will signal a new long position, while passing under 4274 will signal Short.
The index is in long formation, the correction is deep, the probability of a breach above 4372 is great. The crossing of the price above these levels will activate a “double bottom” of Long.