• 350 days Will The ECB Continue To Hike Rates?
  • 350 days Forbes: Aramco Remains Largest Company In The Middle East
  • 352 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 752 days Could Crypto Overtake Traditional Investment?
  • 757 days Americans Still Quitting Jobs At Record Pace
  • 758 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 762 days Is The Dollar Too Strong?
  • 762 days Big Tech Disappoints Investors on Earnings Calls
  • 763 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 764 days China Is Quietly Trying To Distance Itself From Russia
  • 765 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 769 days Crypto Investors Won Big In 2021
  • 769 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 770 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 772 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 772 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 776 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 777 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 777 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 779 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

CAC40 Broadening Formation

CAC40 Chart

With the CAC40 closing above the pink horizontal line, we can consider the double top formation is dead.

Now, looking at the 2 blue lines, we see an obvious broadening formation called: "right-angled and ascending". For more details on this pattern, have a look at the encyclopedia of chart patterns (Thomas N. Bulkowski): http://www.thepatternsite.com/rabfa.html

According to historical data, the next contact with the blue ascending line should be an interesting tradable point:

  • If we are able to move above this line, the price target should be around 4200 (3970 - 3600 = 370; 370 * 0.68 + 3970 = 4221.6)
  • If we start to decline after the next hit, then the first target should be 3600, and if we move below the key 3588, then the next target should be around 3480 (3970 - 3600 = 370 ; 3600 - 370 * 0.32 = 3481.6)

(All the details on computing the price targets are available on the link mentioned above)

Our strategy:

When the market will hit the ascending blue line (next time), we will wait for the first 1.5% delta, then we will follow the direction of the market with the ascending blue line as our stop loss.


Back to homepage

Leave a comment

Leave a comment