Long Term Forecast – CAC Index (France)

I view that CAC is in the long term rising trend that started in 2009. Wave 1 of the trend completed in February 2020 and the index is in the middle of a correction that looks like taking a shape of zigzag, the most typical shape for the second waves. If Fibonacci levels are accurate, I would expect the current wave c of (b) continue upwards for minimum another 150-200 points to reach 0.786 length of wave a, 5733. Ideally, wave c should equal wave a and could reach 6074. Once the top hit, I would anticipate a fast and furious wave (c) that could fall as far as the length of wave (a). Of course, the target would depend on the level of (b). Ideally, the whole wave 2 should stay within the red channel, but there is also a possibility to continue within the green channel. I marked the possible target area for wave 2 by the blue rectangle.
The biggest question remaining is time. As you can see on the chart, wave ii of a smaller degree took 17 months to develop. Wave 2 has lasted only 12 months so far. While there is a chance that wave 2 fully completes with wave (c) in few months, we should remain open for the possibility of a double-zigzag or some more complex formation for this wave.
Once wave 2 completes, wave 3 of III can start and last for many years or even decades.

%d bloggers like this: