The conclusion of the latest observation of May 18 (“CARREFOUR – plan for correction”) was as follows:
“The performance of the past weeks left a bearish wedge formation in the daily chart of the stock, after the upper limit of the formation could not be overcome yesterday either. Accordingly, a larger consolidation or correction movement is favored here for the coming days and weeks. The next price targets are in the EUR 18 to 19 range, provided the share remains below EUR 21.50.”
In the past three weeks, the share of the French supermarket chain moved south as advised and reached the mentioned target area on the downside. The 21.50 mark was not really in danger.
Starting from the area of horizontal support around EUR 18.00, we have seen initial buying interest in the CAC40 since yesterday. This could well develop into a new buy wave, especially if the SMA100 in the daily chart (resistance) at EUR 18.78 can be recaptured on the daily close.
However, the value should now no longer slip below the 18 mark, otherwise the situation would have to be reassessed.