Quick Technical Overview - CAC 40: possible bullish breakout

Quick Technical Overview - CAC 40: possible bullish breakout

15 November 2015, 09:11
Sergey Golubev
0
871

Weekly price is on primary bullish market condition for the secondary ranging located above Ichimoku cloud between the following key reversal support/resistance levels:

  • 5267.5 resistance level located far above Ichimoku cloud in the bullish area of the chart; if the price breaks this level so we may see good bullish breakout; and
  • 4226.0 support level located far below Ichimoku cloud in the bearish area of the chart; if the price breaks this level so the bearish breakdown may be started.

There are intermediate support/resistance levels which the price should cross on the way to the reversal levels:

  • 5008.0 resistance level located near the border between the primary bearish and the primary bullish on the chart; if the price breaks this level from below to above so the bullish trend will be continuing with the secondary ranging condition; and
  • 4520.0 support level located in the primary ranging bearish area of the chart; if the price breaks this level from above to below so we may see the price to be reversed to the bearish market condition with the secondary ranging.

Chinkou Span line is located to be below and near the price to be ready to break it from below to above for the good possible breakout. Absolute Strength indicator is estimating the bullish trend to be continuing.

The Strategy:
- watch close price to break 5008.0 resistance level for possible buy trade with the target to be below 5267.5;
- watch price to break
4520.0 support level for possible sell trade with 4226.0 as the target.
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