France 40 - It's time to breakout!!!A potential breakout setup is forming on the France 40 (CAC 40) index on the 4-hour chart. Here’s the rationale behind the planned long position:
✅ Trade Idea:
Market Structure: After a sharp sell-off, price has started to stabilize and form a base just below a key resistance zone (~7738).
EMA Confluence: Price is reclaiming short-term EMAs (black, orange, blue), suggesting a shift in momentum.
Breakout Anticipation: A clean breakout above the current range could signal trend reversal or at least a strong retracement.
Risk/Reward: The trade offers a solid risk-to-reward ratio (approx. 3:1), with stop loss set just below the recent swing low and target near previous resistance (~7973).
📌 Trade Details:
Entry: On confirmed breakout above ~7738 (preferably a candle close above)
Stop Loss: ~7685 (below current consolidation and EMAs)
Take Profit: ~7973 (prior structure high / resistance zone)
Timeframe: 4H
Strategy: Breakout continuation after trend exhaustion, supported by EMA reclaim and base formation.
⚠️ Note: If price fails to close above resistance and breaks back below EMAs, the setup will be invalidated.
Are you watching FR40 this week? Would you take this trade or wait for more confirmation?
#FR40 #CAC40 #BreakoutTrading #TechnicalAnalysis #PriceAction #EMA #TradingPlan #RiskManagement
