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...
Short it as soon as possible
AEX SHORT : 520-515 entry
Quadruple Bearish Divergence
This is the best short oppurtunity you will find
Stoploss will be above the last high
Risk reward ratio is 5.7
AEX is approaching our first resistance at 512.2 ( Horizontal overlap resistance, 38.2% Fibonacci retracement , 61.8% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 477.9 (50% Fibonacci retracement , horizontal swing low support)
Stochastic (55,5,3) is also approaching resistance where we might...