Wednesday, January 25, 2017

CAC: Fibonacci analysis | FX Signals

CAC: Fibonacci analysis | FX Signals

CAC: Fibonacci analysis25 January 2017, 15:21


Scenario
TimeframeWeekly
RecommendationBUY STOP
Entry Point4886.0
Take Profit4910.0, 4955.0
Stop Loss4870.0
Key Levels4768.0. 4816.0, 4844.0, 4867.0, 4918.0, 4919.0, 4955.0
Alternative scenario
RecommendationSELL STOP
Entry Point4867.0
Take Profit4844.00, 4816.0
Stop Loss4880.0
Key Levels4768.0. 4816.0, 4844.0, 4867.0, 4918.0, 4919.0, 4955.0
The growth of the price is possible.
On the 4-hour chart the price rebounded from the level of 4816.0 (correction 23.6%) and is pointed to the beginning of the year’s maxima at the level of 4919.0. Still there couldn’t be enough growth potential, as the Stochastic has entered the overbought area and broke the upper border of the Bollinger Bands, so after the reversal the correction can develop to the level of 4844.0 (the middle line of the Bollinger Bands) and 4816.0.
On the daily chart the price has reached the middle line of the Bollinger Bands at the level of 4867.0. The price can consolidate above it, as the Stochastic is pointed upwards, and the price can move to the levels of 4918.0 and 4955.0 (correction 76.4% for the long term trend). Otherwise the price can return to the lower border of the Bollinger Bands (4810.0) and 4768.0 (correction 61.8% for the long term trend).
Trading scenario
The long positions are preferable, but open ones only after the price is set above the level of 4885.0 with the target at 4910.0, 4955.0. Stop loss is at 4870.0.
Alternative scenario
Sell the stock below the level of 4868.0 with the target at 4844.00, 4816.0 and stop loss at 4880.0.