The CAC 40 is poised for a major technical breakout, with the index probing towards its all-time record high.
CAC 40 analysis shows the index could rally towards the 6,200, and possibly the 6,400 resistance level once comfortably above the 6,109 level..
CAC 40 medium-term price trend
The CAC 40 is set to make a new record high, as the index edges closer to the 6,109 technical level.
Bullish sentiment continues to spread through European indices, as investors speculate that central banks will offer accommodative monetary policy indefinitely.
CAC 40 technical analysis shows that the index could soon test towards the 6,200 level before making its next decisive move.
A rising wedge pattern on the daily time frame shows that major trendline resistance is located around the 6,200 level.
It is noteworthy that this trendline has acted as formidable technical resistance over recent months, making it a make or break area for the CAC 40.
CAC 40 short-term price trend
CAC 40 technical analysis shows that the index could rally through to the 6,400 level once the 6,109 resistance level is breached.
The four-hour time frame is showing that a bullish inverted head-and-shoulder pattern is present, with around 300 points upside potential.
Dip-buying towards the 6,050 support region is to be expected on any technical pullbacks from current trading levels.
Bulls would ideally like to see any technical pullbacks not extending further than the 5,990 level, although the bullish short-term remains intact while price trades above the 5,960 level.
CAC 40 technical summary
CAC 40 technical analysis shows that a major upside breakout can occur if buyers move price above the 6,109 level. Upside targets for the index extend towards the 6,200 to 6,400 levels.