Cac breaking down from the crown formation
Updated
Cac has broken down from the crown formation back in the October, but the 4900 level were holding up as support.
However, things finally started to crack and the prices are breaking down from that level.
I think it is inevitable that the Cac is going to challenge the 4600 consolidation area. That range contains a good half year of price action, which should provide strong support.
But ultimately, i am looking at the 200% extension of that crown formation.
However, things finally started to crack and the prices are breaking down from that level.
I think it is inevitable that the Cac is going to challenge the 4600 consolidation area. That range contains a good half year of price action, which should provide strong support.
But ultimately, i am looking at the 200% extension of that crown formation.
Trade active
Cac moves are super clean and technical both in lower time frame and higher time frame. in the weekly chart, the plot can't be clearer -- it has bounced from the upper edge of the year long trading range in 2016, which has coincided with the 1st target of the big crown formation. The bounce is likely to be sold in the body of the bull bar below 4900 support. If it is able to test the 4900 level, then I am going to sell even more. The second target of the big crown formation is at 4070, which can be achieved in the first half of the year. Because the crown formation took 6 months to form, the liquidation, which has started by Oct, is likely to be symmetric in time. This has pointed towards Apr May as the possible target fulfillment time window.
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