Recommendation for CAC 40: Strong Sell
Sell Stop : Below 4288.45
Stop Loss : Above 4714.74
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(50) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
On the daily timeframe FR40: D1 is falling below the 50-day moving average MA(50), which is declining itself. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 4288.45. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 4714.74. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (4714.74) without reaching the order (4288.45), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis
Economic data from France in recent weeks indicate French economy performance has been deteriorating. Will the FR40 retreat continue?