At the very moment, baring in mind of the timing, the economic outlook, CAC40 is facing a correction as forseen in my previous analysis.
We are in a double top formation with the neckline at 4100 and after a pull back, we may be at around 4050-3900. Bellow that level, it would be a change of trend. But there is still cheap money in the market particularECB...
As forseen since Mid June, CAC40 is in a correction process. There is no breaking news in the market, and the summer sell-off continues.
Therefore, the correction process may continue until 4100, bellow that leval and in particlar bellow 3850 it is rather a consolidation and a clear reversal of trend rather then a correction. If this happen, ECB would intervene...
CAC has faced a normal correction phase until 4280. At that level, indicators show clearly that we are at an oversold level.
Bare in mind that ECB may be able to announce an ABS with an amount and a timing.
Therefore the second correction phase may slow down. Initialy the first correction was at around 4350 and the second one at 4180.
Because we are at an...
Yesterday the index broke through it's 50 day EMA, however because of independence day it opened lower this morning, so it will be interesting to see how index will open next Monday to see if the CAC has really broken through the resistance.
If so I'm going long, and I will target 4550.
Please share your opinion in the comment section.
European indexes ended the week lower first time for the last two months — something to take notice. French index CAC40 was the worst performer, broke its accelerated trend line and closed below 8 EMA. It will be healthy to see some type of consolidation after the big move up with a potential intermidiate target at 4,264 where 50 EMA is situated. But first it...
Well, VIx is in a forced uptrend, because of the oversold level on the one hand, and the overconfidence of the market on the other. It means that all indexes are higher then they should be.
Stoch switch from the oversold level to a regular long level. This is the initial sign of a reversal trend in Indexes as well as on VIX. At least a technical correction for...
ECB President was very clear. There is yet no sign of growth in Europe and worst, a risk of deflation. Refi interest rate has been lowered, and even on the deposit rate, ECB decided to go to a negative rate, like BoJ did in the past.
One can think that money withdrawn from the saving accounts would go on the market, but the market is very week, with no growth...
CAC40's was on an excessive level. Above 4506, it is a very illusive and excessive level as far as I am concerned. YOu can clearly see on my previous studies that my headline goal was 4506. I could have reviewed this level if ECB was clearly announcing a European QE which will not yet be the case.
Having said that, on a purely technical aspect, the index may face...
We came at the very limit of what CAC40 can reach. Above 4506, there is no technical, macro economics, micro economic or market justification.
Having said that, of course, at the end of the day, it is the difference of weight between buyers and sellers.
So far, it appears that buyers are at majority in the market. However, if Bears pull the trigger, it's going...
Crucial times are very close now. Will wait for the closing. If the $CAC close above his support and Fibo 23.6%, we could play the upside move to 4514pts. If it close below I'll short the $CAC. My 1st target will be 4345pts.
It was interesting to observe CAC40 this week. Despite the move down of DAX30, DJI, SP500, NSDQ, event Eurostoxx, CAC40 try to stick upside at a range between 44500 and 4500. MACD shows that there is no momentum, no more steam to keep CAC40 that high up. But STOCH shows that there is a try to keep it up at 4500 as if this range would be a proof of a healthy ...
The Chart clearly shows a double top pattern.... If we observe the RSI, it appears the there is a possibility that the bull trend can reverse and we may be on the eve of that reversal.
