CAC40. Toward a formation of a double TOP

INDEX:CAC   CAC 40 Index
89 3 2
At the very moment, baring in mind of the timing, the economic outlook, CAC40 is facing a correction as forseen in my previous analysis.
We are in a double top formation with the neckline at 4100 and after a pull back, we may be at around 4050-3900. Bellow that level, it would be a change of trend. But there is still cheap money in the market particularECB policy. Therefore, after the end of the double top neckline and pull back movement, we may very much go up again, not until 4600 but at least over 4400 unless ECB is launching the ABS/R-LTRO
LEt's wait and see
Dear Hamed, for a double Top there should be a Clear Increase, decrease, increase. Therefore if you take 4400 CAC40 is going down until 4182 before going up to 4252 and going down again. Therefore a double top should have a clear shape and a clear top that match with STOCH. If you see the STOCH and the RSI you will see that the top is 4252 it goes down until 4100 before going up again to 4252. Therefore for a chartist approach, the Index riched twice the same TOP and has just one bottom. The bottom becomes the neckline. And after a little pull up, the index may go bellow 4100.
Concerning ABS and LTRO I would advice you to google in make ECB European Central Bank and LTRO or ABS Asset Backed Securities and you will have all the necessary information
+1 Reply
Could you also explain what is ABS/R-LTRO? thanks, Hamed
Why you don't consider 4400 level as the first top? considering that today candle stick like a low test bar. Kind regards, Hamed
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