CAC 40 Index Sends Ominous Sell Signal To French Equity Investors

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CAC 40 Month-to-month Chart.

The European fairness markets have rebounded from the final 12 months’s coronavirus-crash lows with related zeal to that of the USA.

A number of main fairness indices have made new highs and the month-to-month charts present fast (and steep) ascents.

And France’s inventory index is not any completely different. As we speak, we take a look at the month-to-month chart of the CAC 40 index and spotlight some troubling developments.

You’ll be able to see simply how rapidly the French index has climbed again to the highest of its 12-year channel. Not solely did the CAC 40 take a look at the highest of the value channel, but additionally its 2000 excessive at (1). This confluence of resistance turned out to be an excessive amount of for the CAC 40, making a bearish doji star sample within the midst of reversing decrease.

If a breakout takes place, above the 2000 highs at (1), it might ship a sturdy bullish message.

Worth is now making an attempt to interrupt under its sharp up-trend line at (2). If weak point persists, it might ship a bearish message to French and European buyers. Keep tuned.

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