The French Market Proves to be Very Technical

The French are known as very expressive people. And this seems to have leaked into their stock market. Looking at the chart below from the last 12 months, there have been numerous patterns and one at a critical point right now. First the AB = CD pattern that covers most of the chart finally completed in mid May and has been pulling back since. That pullback triggered on a Double Top. Pulling back 300 points it then bounced and pulled back another 300 points matching the Measured Move to the current level. Along the way in the ABCD the Diamond continuation ran the same 500 points out of it to 4050 as it had into it.

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So now we sit on support with the Relative Strength Index (RSI) dipping into technically oversold territory in an Ascending Triangle. A break of the lower support carries a target lower to 3150. A bounce here targets the 3850-3875 area. Either way is a big move.

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