The bulls have failed to take back 4900, and the sellers are unrelenting.
The market is too weak to break the pattern of lower highs. After the lower high being formed on last Thursday, it is merely a matter of time to see a lower low to print.
The Monday's trading is crucial in shaping up the last week of trading by setting up an opening range.
If the opening range is tight, then a break out later in that week is likely.
The market is too weak to break the pattern of lower highs. After the lower high being formed on last Thursday, it is merely a matter of time to see a lower low to print.
The Monday's trading is crucial in shaping up the last week of trading by setting up an opening range.
If the opening range is tight, then a break out later in that week is likely.
Trade active:
Cac has bounced from the 4600 - 4550 major support area which is identified from the weekly chart. It is, at this moment, in the process of making the second leg of a two legged correction to the upside. It is likely to be met with a lot of supply in the 4750 to 4800 area. Even if it retraced 100% of the Christmas decline, there is still plenty of supply from 4900 onward.
Hence, for traders like me, it is utterly clear that I should be building short positions from 4750 on and hold it until the retest of the 4600 major support. If the 4550 would be taken out, then additional position should be added.
Hence, for traders like me, it is utterly clear that I should be building short positions from 4750 on and hold it until the retest of the 4600 major support. If the 4550 would be taken out, then additional position should be added.