France is in big trouble!Big short potencial in France. Political trouble will deepening hand in hand. More potencial there is in weekly and monthly timeframe.
FRA40 trade ideas
France CAC40 - Sep'16Equities across the board coming off today... with S&P dipping below 2100.
Anticipating a break below 4420, which would put it in buy territory.
CAC should continue up passed the trendline during next yearCAC should continue up passed the trendline during next year
(H1) CAC40 AnalysisPrice is heading towards 4600 @ the daily 0.5 fib paired with an important structural SRLev and R2. We have a WW(Wolfe Wave) Setup. If price reaches these two levels above the trendline or at least touching the upper trendline, I will go short. If price touches the X point of the 2 trendlines (blue vertical line) at a retest I will also go short.
triangle formation to 4570triangle formation to 4570 then drop the sharp line time to buy bx4 beginning of 2017 ;)
CAC40 : The rounding tops show a bearish momentumThe CAC40 is consolidating between 4300 and 4520 pts since the middle of July. The US indices are currently showing weaknesses, and so does the french equity market.
The resistance area at 4550, doubled with the other one at 4520, definitely constitute a barrage for the buyers to go higher. The bearish forces are getting a bit stronger as weeks pass, as shown by the rounding tops. The long term moving average (200 days) remains decreasing, which highlights the downside underlying trend.
The first steam to break is the ascending trendline (blue). The current price at the CAC40 is high enough to initiate a short position :
- Short @ 4460
- Target @ 4315
- Stop @ 4520 (just above the first resistance)
Short at levelReason for trade idea:
1. Very strong reversal level
2. Price ranging
If the trade doesnt work out at this level then Ill look for short at the weekly level. If that breaks then Ill be looking at longs.
