- The Parisian index has drifted a little bit during the trading session to the downside.
- But what you'll notice is we are very much in a sideways market.
- We have the 7,500 euro level on the bottom as support in 7,950 euro on the top as resistance. We are basically right in the middle of this market.
So, what I'll be doing is looking for a change of behavior. So, for example, if we bounce a bit, then you start to watch for a breakout. If we break down from here, then you have to look for support for 7,500 euro. The MACD is starting to cross a little bit here, but the histogram in the indicator is pretty tight. So, I think it just shows that we are basically in the summer doldrums. In general, but all things being equal, this is a market that I think eventually tries to go higher because quite frankly, most indices are trying to do that.
This is the wrong time of year to expect massive volume. But you never know there could be something to cross the wires and get things going. The trade negotiations between the European Union and the United States could be a big driver of this.
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I am Buying Dips
As long as we stay in this range, I do like the idea of buying dips, but I'll be watching to see if this area holds because a lot of times when you get consolidation like this, we pull back and then we don't cross to the other side. That's the beginning of the end of consolidation. That would be very interesting and important to watch. Again, I do favor the upside mainly due to the fact that that's how most indices are behaving at the moment.
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