Richemont (CFR): Short Opportunity

CFR has put a stellar performance with earnings that spurred a short covering, price created an island reversal pattern, closed the gap & tried to push higher but buyers are showing exhaustion, looking at the intermediate cycle, we are in week 34, usually a time for a weekly low price. This means we will have a longer weekly cycle. We watch for price going below R3,053.00 as this point is a potential daily cycle low. Once this is set we can expect at least 8 weeks of price trending downwards.

Comment:

Price is now trending towards a daily cycle low which we can expect close to the 200 day moving average, from there we assess the probability of a weekly low or further downside.

Trade closed: target reached