CAC 40 Index Sends Ominous Sell Signal To French Equity Investors
Chris Kimble | Sep 21, 2021 11:51AM ET
The European equity markets have rebounded from the last year’s coronavirus-crash lows with similar zeal to that of the United States.
Several major equity indices have made new highs and the monthly charts show rapid (and steep) ascents.
And France’s CAC 40 stock index is no different. Today, we look at the monthly chart of the and highlight some troubling developments.
You can see just how quickly the French index has climbed back to the top of its 12-year channel. Not only did the CAC 40 test the top of the price channel, but also its 2000 high at (1). This confluence of resistance turned out to be too much for the CAC 40, creating a bearish doji star pattern in the midst of reversing lower.
If a breakout takes place, above the 2000 highs at (1), it would send a strong bullish message.
Price is now attempting to break below its sharp up-trend line at (2). If weakness persists, it would send a bearish message to French and European investors. Stay tuned.
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