France CAC40 - Sep'16Equities across the board coming off today... with S&P dipping below 2100.
Anticipating a break below 4420, which would put it in buy territory.
FRA40 trade ideas
CAC should continue up passed the trendline during next yearCAC should continue up passed the trendline during next year
(H1) CAC40 AnalysisPrice is heading towards 4600 @ the daily 0.5 fib paired with an important structural SRLev and R2. We have a WW(Wolfe Wave) Setup. If price reaches these two levels above the trendline or at least touching the upper trendline, I will go short. If price touches the X point of the 2 trendlines (blue vertical line) at a retest I will also go short.
triangle formation to 4570triangle formation to 4570 then drop the sharp line time to buy bx4 beginning of 2017 ;)
CAC40 : The rounding tops show a bearish momentumThe CAC40 is consolidating between 4300 and 4520 pts since the middle of July. The US indices are currently showing weaknesses, and so does the french equity market.
The resistance area at 4550, doubled with the other one at 4520, definitely constitute a barrage for the buyers to go higher. The bearish forces are getting a bit stronger as weeks pass, as shown by the rounding tops. The long term moving average (200 days) remains decreasing, which highlights the downside underlying trend.
The first steam to break is the ascending trendline (blue). The current price at the CAC40 is high enough to initiate a short position :
- Short @ 4460
- Target @ 4315
- Stop @ 4520 (just above the first resistance)
Short at levelReason for trade idea:
1. Very strong reversal level
2. Price ranging
If the trade doesnt work out at this level then Ill look for short at the weekly level. If that breaks then Ill be looking at longs.
CAC 40 and the world: the End soon after the short at 4700August 31, 2016
Everything is on the chart. It is very precise and you may doubt that it's feasible I know. The lines are not random, they correspond to very specific levels (4700 -> 4450 -> 4500 -> 4280/4310 -> 4450 -> 4084 -> 4300 -> 4090 -> 4180 -> 4084 -> 3709 -> 3904 -> 3556 -> 3477 -> dead cat bounce -> 3050/3100
I would go long now until 4700. Some bad resistance will have to be taken away at 4600 and 4666.
It will drop from 4084 to 4709 in a single week. Probably in summer 2017 (August here). The ultimate target is around 3050-3100. Then I would go bullish until 4450 (May June 2019) then reshort a bit. We shall see !
