Since the vote on Brexit, the path taken by the index is fairly obivous. The impulsion started at the end of June then is followed a period of consolidation from beginning of August until the end of 2016.
The new year started with a serie of new highs when the index reached 7341
The daily graph shows some sign of a reversal with a recent cross of the MACD, a momentum about to go into negative territry and a clear downtrend on the RSI. These indications open the way for a short term downtrend.
This feeling is confirmed by the weekly chart, showing a nearly perfect Marubozu, sign of a reversal in investors' mind and displaying an obvious sellers' dominance.
- Short term, close long or open short to get the opportunity of the index going down until its trend (or 50) near the 7,000 mark
- Mid to Long term, the uptrend still prevails.
- A break below the 7,000 points would confirm the short term short position and initiate a short position.
- On the contrary, a rebound would be a good entry point for a long position
The new year started with a serie of new highs when the index reached 7341
The daily graph shows some sign of a reversal with a recent cross of the MACD, a momentum about to go into negative territry and a clear downtrend on the RSI. These indications open the way for a short term downtrend.
This feeling is confirmed by the weekly chart, showing a nearly perfect Marubozu, sign of a reversal in investors' mind and displaying an obvious sellers' dominance.
- Short term, close long or open short to get the opportunity of the index going down until its trend (or 50) near the 7,000 mark
- Mid to Long term, the uptrend still prevails.
- A break below the 7,000 points would confirm the short term short position and initiate a short position.
- On the contrary, a rebound would be a good entry point for a long position