French CAC short term elliott wave analysis

Elliott wave analysis on SILVER
March 15, 2013
APPLE to test intermediate term resistance
March 19, 2013

One of our site followers have asked my opinion and view on his country’s index. Since he is a great supporter of my work, I post this short analysis regarding France’s CAC 40 Index. The French index is in similar position as all major european and US indices. The rally from last June continues, depsite a few weeks of volatility. However short-term top could be seen near 3870-3900. A confirmation that 5 waves have finished from 3600 will come as soon as prices break below 3825. If that level  is broken downwards, we will expect a move towards 3700 (61,8% retracement). This move will be labeled corrective as long as prices stay above 3600. This level is critical to the longer term trend.

cac1

The form of the decline will also determine how we label the decline. Corrective or ? As can be seen below, 3600 is very important not only for the short-term, but it also has longer term implications. The degree and size of a possible correction will be decided at that level.

CACLONGER

At the 3600 level we also find our lower pitchfork support that includes the entire rise from last June. Breaking that support and channel will be very bearish for this index. This 6% decline could be the start for  a bigger one. But lets not be hasty, prices will first need to break below 3825 first and then the first critical support at 3700. Once this happens, we will come back with a new post. Concluding, our view is similar to the rest of the European and US indices. Prices are near or have already made a top. need to be extra cautious and always raise their stops along as prices rise.

As always, thank you for taking the time to catch up on my thinking.

impulse-wave-rules

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.