FRA40Cash (Daily Timeframe)
Waiting for the downward break of 6340 support level which will complete a bearish trend reversal pattern to go SHORT. Only the upward break of 6577 would cancel the bearish scenario.
Stop loss: 6577
Take profit 1: 6216
Take profit 2: 5993
Take profit 3: 5630
Strategy: Bearish Reversal
I expect the French CAC40 index to consolidate to 5850pts following the recent rally that has brought the RSI in the overbought territory and has enabled the closing of the Gap at 5995. Further more the index has reached the resistance level of the inner ascending channel that has rejected it several times in the past.
Let me know what you think of this idea in comments.
On the long term view this index has made a bearish rally from the early days of February and made a low mid March, and a rally which looked impulsive, therefore we can conclude that the main trend is down.
According to the Elliot Wave Principle every motive rally has to be corrected to a specific fibonacci level, of which has been happening, price correcting in...
A third touch on the expanding pattern arrived with a double top variation (i.e. the second leg slightly higher than the first). The ray line indicates the neckline of that pattern. A confirmation to take this sell entry will be a break and retest of that neckline, which validates the pattern. The final price objective will be at the support trendline of the...
Price in recent sessions in this market has sold off heavily.
As the daily chart shows; price has formed some large bearish candles lower with strong momentum.
Price has also broken through the recent swing low and support area. This recent swing low could now come in as an area of interest.
If price can retrace back higher in the next few sessions we could...