CAC 40 — Bullish Setup | Pullback Before UpsideCAC 40 IndexEURONEXT_DLY:PX1asgharphulpotoThe CAC 40 is developing a potential bullish setup, with the current structure suggesting that the market may first experience a moderate move lower before the next upside phase takes shape. From a technical perspective, the initial decline would represent a corrective phase within the broader setup rather than the primary direction of the trade. Once that downside reaction develops, the analysis points toward a renewed shift toward the buy side, with higher levels coming into focus. The current market backdrop shows the CAC 40 trading below several recent moving averages, while momentum indicators remain subdued. This provides room for a corrective move while also making the reaction from lower levels important for the projected bullish sequence. From a broader fundamental perspective, the index remains exposed to European growth expectations, ECB policy, inflation, bond yields, corporate earnings and movements in the euro. These factors can influence the pace of any recovery and may contribute to volatility during the projected pullback. Market Roadmap Initial Pullback → Structural Reaction → Bullish Continuation → Upside Target 🎯 The key idea is to distinguish the temporary downside phase from the larger projected buying opportunity. If the structure develops as mapped, the lower move can create the foundation for the subsequent upside expansion. Market: CAC 40 Exchange: Euronext Paris Bias: Bullish 📈 Strategy: Buy Structure: Pullback followed by upside continuation The CAC 40 remains a major benchmark of the French equity market, comprising 40 large French-listed companies. Euronext's September 2026 review made no changes to the CAC 40 composition. The pullback is part of the roadmap — the bigger focus remains on the upside move. 🎯