Since the beginning of the year the main French index gained over 9.5% plus last week gained more than 1.0%, furthermore it remains in a bullish phase since early September.
Last week the main French index initially rallied with a wide range and closed near the high of the week, in addition managed to close above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing a overbought market however is still displaying a strong bullish momentum.
We may see another leg up to 2017 high at 5,394.5 however a bounce followed by downward correction may lead to a potential double top pattern which will put the bulls under extreme pressure.
Expecting a downward move to a weekly support at 5,235.0 on a bounce from 2015 high at 5,394.5 (scenario 1) however a break above the 2015 high at 5,394.5 may trigger a bull run up to a Fibonacci extension at 5,655.0 (scenario 2).