Weekly analytics- Forex Technical Analysis: Trend potential – Wait for a correction to sell CAC40.

#CAC40, weekly

Wait for a correction to sell CAC40. 

Technical observation

CAC40 is rising towards the key resistance zone 5031.3-4965.9, my expectation is a rejection of it within the zone for possible bearish momentum toward the support 4583.7 and a breakout below it for a further decline towards 4006.0. Wait for the pullback to the above mentioned zone and a bounce within it to sell this commodity with your take profit at 4583.7 and stop loss at 5221.9.Should there be a clear penetration above 5031.3-4965.9 with a big green candle, wait for a correction to it to confirm possible bullish momentum before you pick long positions, right now only short positions can be recommended for CAC40.

Trade recommendation

Wait for a correction to 5031.3-4965.9 to sell CAC40.

#ESTX50, weekly

Wait for a correction to sell CAC40.

Technical observation

This commodity is rallying around a support 2903.1 and my expectation this week is either a correction to the key resistance zone 3268.4-3264.5 followed by a  bounce within it to pick short positions or a clear penetration below 2903.1 with a big red candle followed by a correction to it for possible bearish momentum towards 2513.7. My advice, remain flat and wait for either the pullback to 3268.4-3264.5 or a breach below 2903.1 to trade ESTX50.The general trend for this pair is downwards so only bearish rally of this commodity can be anticipated, on your way downwards d the key liens to look for include; 2903.1, 2513.7 and 2961.0.

Trade recommendation

Remain neutral.

#SP500, weekly

Wait for a correction to sell CAC40.

Technical observation

The commodity on the weekly chart above is correcting to the key resistance zone 2603.2-2574.9, I expect a rejection of it within the zone for possible bearish rally towards 2324.2.You can remain neutral temporarily and wait for a close within the above mentioned zone to pick short positions with your take profit at 2314.2 and stop loss at 2711.2.Long positions may only be recommended should there be  a clear penetration above 2603.1-2574.9 with a big green candle followed  by a  correction to the just broken zone more than once confirming possible bullish rally of SP500 towards the key resistance level 2875.6.

Trade recommendation

Remain flat.

 

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