Since the beginning of the year the main French index gained more than 7.0% but last week gained more than 1.5%, furthermore it is in a warning phase since late June.
Last week the main French index initially fell but found enough buying pressure to reverse plus trim all its losses and closed near the high of the week, however closed within the previous week range, which suggests being slightly on the bullish side of neutral.
The wide range, wide-spread weekly candle with normal volume does not show any evidence of an anomaly or even a reversal.
The stochastic crossed below the 50 mid line and is displaying a strong bearish momentum.
Expecting a downward move to a Fibonacci extension at 5,140.1 on a bounce from the higher end of the weekly support at 5,235.0 (scenario 1) however a break above the higher end of the weekly support at 5,235.0 may trigger a bull run up to a Fibonacci extension at 5,392.4 (scenario 2).
Since the beginning of the year the main French index gained more than 7.5% and last week alone rose in excess of 1.5% furthermore in mid-April made a phase change, shifting from a warning to a bullish phase.
Last week the main French index tried to rally with a wide range but found enough selling pressure at 2015 high trimming some of its gains although closed in the green, in the middle of the weekly range, in addition managed to close above the previous week high, which suggests a bullish momentum.
The stochastic crossed below the overbought zone and is setting lower highs while price is making higher highs, signs of a potential bearish divergence.
Expecting an upward move to a Fibonacci extension at 5,392.0 (scenario 1) on a bounce from the previous Fibonacci extension at 5,140.0 however a break below the previous week low at 5,123.0 may trigger a profit taking down to the lower zone of the weekly resistance at 4,975.0 (scenario 2).