Cac is making a complex correction

The bounce in Cac after the big October stock rout has pretty much run out of the energy. It has traded back into the 5080 - 5180 area before the last down leg. Now there is a sign that it might be breaking down from this trading range. However, the break looks lacking conviction and absence of follow through. It is possible that it gains down side momentum during the NY session together with the US equity. However, there is another possibility that the break is merely a false break and it is going to rip back to take out the upper resistance line and turn this pattern into an inverted head shoulder pattern.