CAC update - Andrew's pitchfork

Hi everybody,

Quick update of the current bearish trend on a 2hours time frame.

The bearish move has been perfectly delimited by a channel formed by the outer line fibonacci 113% and the inner line Fibonacci 23,6% of the bearish pitchfork. Note that each bullish correction has reached the 78,6% and each bearish extension has reached 141% except the last one that stopped on the 127% extension. That may be a sign that the bearish trend is loosing strength or at least stop in the short term.
Note that prices did not reach the MLH of the pitchfork (inside the time box) so this may be an indicator that the bearish trend is not that strong and that prices may break the bearish pitchfork on the upside, i.e. initiating a bullish trend.



Before that, we should see an attempt to fill the gap left between 3937 and 3956. Above we may reach the parabolic SAR currently at 3979 (on 2hours time frame). For trend followers, only a break of 4016 will definitely validate a trend reversal.

Good trades
Pj.

CAC update Bearish Butterfly pattern

Hi everybody,

Back on track after a small personal problem, nothing serious...

Nevertheless, the French index has reacted has forcast so far. the 50% retracement have proved to be the expected resistance where bears were waiting to fight back.

So here we are now on the lower Bollinger band of the time frame 2hours. The index has retraced so far 78,6% of the last bullish leg. We are here on a critical turning point for the short term. Rebound at the current level or even at 88,6% (3899) could send the index to 4087-95. We would validate then a bearish Butterfly pattern. The completion of this pattern validated with a reverse on that PRZ would definitely send the CAC on a bearish mode.



Be aware that a break of 3884 on a daily close (3867 possible intra day) will set the index on a sell of mode, targets 3812, 3721.



Good trades,
Pj.