CAC: Negative moods, dead cross and a gap

14.12.2018 / 09:34

Rating:

Technical analysis indices CAC – D1

Our expectations: Negative moods in Europe retain and ECB officially terminated the stimulus. A new descending trend is forming, the moving averages confirm that. The price opened with a downward gap, it’s better to wait and if the gap isn’t filled in the next couple of hours, could be looked for a place for entering in short positions.

Indicators:
50SMA crosses 200SMA in a descending direction – Dead cross.
Test at 23.6% Fibo of the medium term movement and at 50% of the short term.
DeMarker directs to oversold territory and sharp and aggressive moves are possible.

SL: 5000
A
lternative scenario: Filling of today’s gap could push the price to a bigger correction of the current short.

Trader Georgi Bozhidarov

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CAC: Negative moods, dead cross and a gap

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