CAC: 08.08.2017
Our expectations: A probable decline from levels of diagonal and horizontal resistance and opening with a downward gap. Stop loss at 5250,00. We can wait for correction and fill of the gap to better position and minimize risk.
Alternative scenario: If the price breaks above the top of the previous bar (dodji) this will turn the sentiment to bullish, as we will also have a breakout of a flag formation.
Comment:
Short term downtrend and correction to 38.2 Fibonacci.
Levels of diagonal and horizontal resistance - negative signal.
Dodji bar and opening with a gap - signal to sell.
A test of the breakout below SMA50 - a probability of new downward movement.
DeM (14) does not give clear signals.
Fundamental: A strong euro will make investors cautious about new stocks purchases, which will be negative for the European indices.
Trader Nikolay Georgiev
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