Long term basis: towards MQ?

On a yearly basis, the status for our stochastic is overbought.

On a quarterly basis, Bollinger bands are flat. The dynamic for our 7 quarters moving average will continue for next period or more. A bullish A type crossover could develop at the end of 2010. With a bearish non-crossover (in early January 2010) as a status for our stochastic a collapse towards LQ is expected. Otherwise, a recovery towards MQ or UM could develop.

On a monthly basis; a bearish parallel pattern is over with a close above MM (but we are cautious with the turn over for CAC 40 components). With our 7 / 23 months moving averages, a bullish B type crossover could develop within 3 months.

Idea: with a current close above MM, MQ could be our next target.

R = MM (3670, end of month), MQ (4543);    S = MW (3538), LW (3037)

Medium term: towards PW if MD fails as a resistance.

On a weekly basis, a similar pattern to the mid-July one is expected if MD fails as a resistance. Otherwise, MW is our first objective. Afterwards, a bearish pattern could develop with a daily bearish pre-parallel pattern.

Idea: UW is our next target if PW fail as a resistance

R = MD (3771), PW (3913), UW (4038);        S= MW (3538), LW (3037)

Short term: UD / LD spread is not minimal.

On a daily basis, UD / LD spread is not minimal. Above MD, with our 7 / 23 days moving averages, a bullish A type crossover could develop. UD will be a strong resistance. Afterwards a bullish pre-parallel pattern could develop. Otherwise, if MD acts as a resistance, a bearish pre-parallel pattern is expected.

Idea: weak, as long as MD proves to be a resistance.

R = MD (3771), UD (3958);     S= LD (3583)

Conclusion: below MW, LW will be our next target. Above MD (at the close), remind July rally.