Chart of the day

CAC40 is ready for a long-term fifth wave upside extension. We need to see aa break above 7240 for this upside extension to be confirmed.

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 7240 as it was mentioned. If we get a confirmed break below 7100 an upside reversal can be invalidated and we could see a deeper pullback and a test of an important 6940 downside resistance instead of an immediate continuation.

Long trade, you can open here with the stops below 6940. We favor the long trade entries as we expect an upside extension in the fifth wave favoring a good risk to reward.