As defined by Helen Alpino, the dead cat bounce comes a time in a downtrend when bear traders decide to take profit. Bull traders believe that the downtrend has come to an end and that the bottom has been reached. This is what we have seen from March to May 2018 with a .
Technically, we can also clearly identified the Waves and we can now consider that we are in wave 5 . The of Wave 1 is around the 2/2,272 which confirm the end of Wave 3. Finally, volumes are in increasing since June 18.
From now, several options can appears:
1. Wave 5 finishes the down trend around the (tested 2 times as you can see on the chart and we could expect a strong reaction.
2. We consider the Wave 1 to project the Wave 5 end which give us target around 27€
Q3 results (forecasted for end of October), strongly awaited by the market, will definetly give the trend for the next months.
My recommandation : Remain attentive to EURONEXT:FR . We arrive on the downtrend end where we could face a strong bull reaction