Richemont Pursuing a Weekly Low
We have previously mapped the bearish cycle for Richemont, price is now arriving into a horizontal support zone where we can expect a daily cycle low. We will know this is confirmed when price closes above the blue downward slopping trendline. The pink resistance line is where price confirms a weekly low is behind us.
Our expectation is that price might want more downside in October, so the swing low price that will be set in current bottom will be the stop-loss, once price goes below it we close the trade and wait on the side. For long-term traders who went short, they can accumulate within this price range to lower pink trendline, the profit from short position provides a cushion for any temporary downside.
Our expectation is that price might want more downside in October, so the swing low price that will be set in current bottom will be the stop-loss, once price goes below it we close the trade and wait on the side. For long-term traders who went short, they can accumulate within this price range to lower pink trendline, the profit from short position provides a cushion for any temporary downside.
Comment:
Richemont confirmed the daily cycle as expected, price now moving higher, we are looking at 200 day moving average and the 50 day moving average, if we get strong rejection there or a death cross, we will look at price continuing the downtrend.
Trade closed: stop reached:
CFR has gone lower than 25 August representing a cycle failure, we can expect more downside.
