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Scenarios for CAC 40 (Euronext)

EURONEXT:PX1   CAC 40 Index
CAC40 has been ranging between 2500-7000 points since more than 20 years.

We can see the impact of previous big crises on its evolution and prevented it to go break the 7000 threshold.

I think that CAC40 is now at a turning point. Does it continue to go up to test 7000 again or fall down?

It is quite difficult to have a long-term prediction, specially in this context where the economical/geopolitical instabilities dominate.

In my opinion, CAC40 still have good chance to reach 7000 point again in short-term. As what happened in the past, CAC40 followed two ascending trendlines and broke down at the sixth time retesting these trendlines . We can see the pattern are being repeated and CAC40 touched the trendline 4 times. The next (5th) retest will predict a new price structure.

For mid & long terms, three scenarios (A, B, C) would happens (see the below snapshot).


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