My current opinion is that European markets are losing steam. Many highly correlated markets reached multi-month targets. We are very close to a reversal.
The patterns are to be confirmed for a breakout to the downside (current bias)
Stock market is still bullish we have breakout still above MA 200 european stock market is under valued we are still lower than 2000 and 2007 but got like at least 40% inflation. we can go up to 8400-10100. don't listen perma bear what we have right now is nothing, be ready for the real bubble..
red line = big bull market invalidation
The CAC 40 is trading near new high at 5730 after breaking a major resistance at 5650 becoming now a support, the trend is Bullish but the question is how far can we go in this new bubble ?
5800 ? or more or we will come back to 5650 ?
so my strategy is to wait for a close above 5700 to go long to target 5760 -5770
but if we close below I am neutral till the...
short #CAC40 at 5776 if you cant catch it,try tom around 70-80 and sell,the plan its simply to take the correction of a bearish rsi divergence + we are on monthly resistance and a bit overbought so 3 Tp like that each tp you cut 33% of your position
I expected today that the French index will go through correction after overextended buy, but seems like, this buying frenzy hasnt stopped .
Which brings me to a good trading idea, to short this double top formation and wait for it to reach its bottom 0.681 fibo retracement after overbought levels.
Open Short FRA40 5756
Tp1 5700
Tp2 5650
Tp3 5600
Tp4 5500
The CAC 40 is consolidating after reaching new highs at 5730 coming back under a main resistance at 5650 but the trend is still Bullish , we might continue this correction and trying to test the new support at 5539 if we manage to break the 5600 level so we have 2 scenario here :
1- the CAC 40 will test 5600 and bounce back to 5650
2- the CAC 40 will break 5600...
