- The market has been registering higher highs and low since mid-April ; the mid-term trend was then bullish.
- As stated in our previous analysis, the market has successfully accelerated to a new historical high around 8,483pts.
Since then, with continuing disappointing economic developments regarding inflation, PMI and retail sales data, investors have been pushed to take some profits out.
This led to this technical situation where the market seems to have come to a state of exhaustion, highlighted by a rounding top pattern.
Both moving average are in bearish configuration following a downside cross.
The MACD indicator evolves inside its selling zone too.
- The short-term outlook is bearish for the market.
The rounding top pattern is seen as a bearish reversal configuration, especially when it occurs far in a bullish trend, at an all-time high level.
The market has just broken-out the 23.6% fibonacci level at 8,310pts and its next targets can be found around 8,200pts, 8,117pts and 8,030pts by extension.
Pierre Veyret, Technical Analyst at activTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- As stated in our previous analysis, the market has successfully accelerated to a new historical high around 8,483pts.
Since then, with continuing disappointing economic developments regarding inflation, PMI and retail sales data, investors have been pushed to take some profits out.
This led to this technical situation where the market seems to have come to a state of exhaustion, highlighted by a rounding top pattern.
Both moving average are in bearish configuration following a downside cross.
The MACD indicator evolves inside its selling zone too.
- The short-term outlook is bearish for the market.
The rounding top pattern is seen as a bearish reversal configuration, especially when it occurs far in a bullish trend, at an all-time high level.
The market has just broken-out the 23.6% fibonacci level at 8,310pts and its next targets can be found around 8,200pts, 8,117pts and 8,030pts by extension.
Pierre Veyret, Technical Analyst at activTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.