In 2002 the AEX made a big drop to 380 points. After that point the AEX made a rally up to 528 points. Back to now, this year we als made a big drop to 390 points. 29 april we reached the 528 points. Yesterday we saw a big red candle, does this mean we have seen the top? If we look back at 2002 the answer is yes ;)
Fundamental: expectation of prolonging corona virus meassures by the dutch goverment, announcement after market.
These meassures would result in lower opening of AEX on 1/4/2020?
Technical: strong resistance at the 0.382 Fibonachi retracement
This resistance is a historical support of dec 2018 (bottom of last bull cycle)
No '100% proof' analysis, my personal idea of the future of the chart. ATH has been hit and is still funnelling. Personally not thinking of a much higher hit in the future of 2020.
Complete random analysis with personal view of interpretation.
Comment with your own view on the market or this chart, no harm in a disagreement.
AEX is approaching our first resistance at 534.4 (61.8% fibonacci retracement , 100% fibonacci extension , horizontal overlap resistance) and a strong drop might occur pushing price down to our major support at 505.7 (50% fibonacci retracement , 61.8% fibonacci extension ).
Stochastic (89, 5, 3) is also approaching resistance and we might see a corresponding drop...