Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
A head and shoulders pattern is in the making in Cac.
Cac is a much more technical instrument with clean formations.
I often use it as a leading indicator.
1. Cac had broken the preliminary right shoulder high during the night session on the back of unrelenting performance in the US equity. With an open in the value area of Wednesday, I see the odds of trading through the Wednesday high is quite high.
If the break out were to be real, then we should have a strong consolidation above 4820 level and the next resistance line to challenge would be 4860 level and then 4920. This is going to put the bears under pressure.
But who said there would be easy money in the market. If a trade would be as obvious as what is presented in European equity, then there would be squeezes. Expect some final resolution early next week.
2. DAX has a bullish open above yesterday's value, with yesterday's high being taken out during yesterday's evening session, i would not bet on the 950 resistance level being held today. For a sustainable bull run, it would be much healthier for DAX to test 10880 level where the prior day's VAH is.
It is possible that Cac is making a big inverse head and shoulder's pattern below the Oct - Nov consolidation/distribution range. If that indeed be the case, Cac would have to trade back to 4920 and the left should took about two weeks to form. Then the cac would have to hover above 4760 for another 10 days in order to get the bullish rotation in a larger time frame.
Cac is heading for neckline to seek support.
basically, the bulls have failed to lift the price up due to lack of interest/demand.
The 4765 support should be strong enough to hold the cac through until New York open.
If there is bullish development in Us equity, then it should still be alive until next week.
Cac back at the neckline.
Two lots of the shorts taken profit leaving two lots as the runner.
Now I am waiting for the break of the neckline today or next week for a decisive resolution to the down side.
If ES attempts a false break of 2600 key level, then I would add shorts to ES and Cac.
Jesus, what has happened to the US equity?
Is it a holiday or some sort? Or the government shut down started to affect people logining to their trading accounts?
2 hours since the open, NQ has moved only 30 points? you gotta be kidding me.
1. Cac broke down from the major neckline support at 4765. It has confirmed a top is in place for the up swing in Cac.
2. Nasdaq is looking for support at the Thursday low which is the neckline of the topping formation. A break of that level would put the top in place for this up swing since Christmas.
