- Prices have been trading upwards since the end of October 2023, the market is therefore in a medium-term bullish trend.
- Very recently, and since the establishment of a new all-time high below 7,655.0pts, the market has retraced towards its double support at 7,400.0pts. Prices are now trading below the two 13- and 21-period exponential moving averages, which have nevertheless not yet recorded any bearish crossover.
The DMI indicator shows an increase in selling pressure, but within a less and less directional movement.
- Despite the recent pull-back, the situation is not yet really dangerous for the French index. Indeed, a retracement following a strong rally that led prices to a new historic high point is even seen as something healthy at this point. This may be symbolized by the taking of profits by certain investors as well as a way of testing a newly established support level.
This new support level is also significant because it is made up of a double overlap (last peak + dotted downward trend line). Furthermore, the fall in directionality given by the DMI indicator also demonstrates a price movement that is not really significant in the very short term.
In conclusion, as long as the level of 7,400.0 points holds, the scenario of the continuation of the bullish movement started a few months ago should continue.
- Very recently, and since the establishment of a new all-time high below 7,655.0pts, the market has retraced towards its double support at 7,400.0pts. Prices are now trading below the two 13- and 21-period exponential moving averages, which have nevertheless not yet recorded any bearish crossover.
The DMI indicator shows an increase in selling pressure, but within a less and less directional movement.
- Despite the recent pull-back, the situation is not yet really dangerous for the French index. Indeed, a retracement following a strong rally that led prices to a new historic high point is even seen as something healthy at this point. This may be symbolized by the taking of profits by certain investors as well as a way of testing a newly established support level.
This new support level is also significant because it is made up of a double overlap (last peak + dotted downward trend line). Furthermore, the fall in directionality given by the DMI indicator also demonstrates a price movement that is not really significant in the very short term.
In conclusion, as long as the level of 7,400.0 points holds, the scenario of the continuation of the bullish movement started a few months ago should continue.