SEP16 Euro Stoxx hanging man trend points to bulls losing strength
Thursday’s bearish signals were initially confirmed with futures posting a third lower daily low in a row and losses of virtually 50 points. However, for the third day in succession, the dip has been bought, sentiment recovering to close little changed on the day. That is the third unchanged close in a row.
Despite this, a daily hanging man formation has been formed, a signal which usually points to bulls losing strength and for futures to weaken.
Management and risk description
Allow room to sell an intraday rally and lower the stop to entry if the first target is met.
Entry: Sell at market and 3197, just below yesterday's high.
Stop: 3130, March's top.
Target: 3041, yesterday's low and 3020, a four-hour bull trend.
Time horizon: Today only.
Non-independent investment research disclaimer applies. Read more