 Hello and welcome to the CMC markets chart of the week video with myself dev madden market analyst here at CMC markets And today's date is Wednesday the 24th of January 2018 and the time has just gone 12 20 p.m UK time now this week's chart of the week is going to be sage group as We can see here from the weekly chart We can see that sage group has been in a solid upper trend since 2009 a classic example of an upper trend Higher highs and higher lows all the way along But if you take a look at the chart more recently We can see that only yet this week did we actually create a fresh all-time high for sage group But today the stock has come under major pressure And it's given up a lot of the gains that have been made up over the last few weeks And the reason I want to talk about this this chart in particular this week Is because the the red candle here that I've circled on the chart could be a bearish engulfing Let's flip over here to give you a textbook definition of what a bearish engulfing is a bearish a bearish engulfing Is when you have a solid upward trend here like so the final positive candle on the on the upward trend has What a small relatively small body here as the yellow bits here and also relatively small wicks There are the kind of lines coming off of the candle either side signifying the high high and the low Followed by a large negative in this case a red candle, which completely the body of it completely Eclipse is or engulfs previous positive candle Notice how the open of the negative candle is well above the previous positive close of the last candle And notice how the low and the close of the negative candle is well below that of the of the close of The previous of the previous positive candle also the low of the of the negative candle is well below the low of the previous positive Candle and the lower down that low is on the negative candle the more significant It is the bearish engulfing is can be a sign of the Changing trend it could be a sign that the market is going to is going to move and Downward trend or more often than not it could be a sign that the the upward trend that has been in is Has gone to give up some ground is going to correct itself and could potentially continue on an upward trend on a more gentler fashion So we could be looking at a bit of a negative move in the in the share price action of sage in the short term So looking over at the actual price the share price action of sage this week Even though this is a weekly candle. We are basically in the middle of the week So this candle has yet to be formed I just think this is as the potential to form a bullish Sorry, my bearish rather engulfing notice how the open of this week was well above the close of last week Which is a positive close the high of this week and on the week here has taken up high of last week And notice how the low of this week is well below the low of the previous few weeks Also, this market fits exactly that the that the type or the profile of a bearish engulfing We've had a quite a positive one run recently We can see here that for the past six weeks in a row sage group share price has been pushing higher I create an all-time higher this week and now we've seen a large sell-off So what could this all mean this could mean that we could see the beginning of a medium to short term negative move in sage For potentially continuing the wider upward trend that has been in since 2009 given that's been an upward trend since 2009 I suspect we're going to see continuation of the wider upward trend continue But in the dear term we could see the share price pressed lower We could be looking head back down towards 740 and 740 was significant as it acted as resistance in May in October and also acted as support in November as well And if you do happen to move south of 740 we could even hit back down towards the Psychological number of seven pounds a share notice There was a lot of price consolidation price action in around seven pounds a share in the middle of last year And if you do happen to move south of seven pounds a share We could even head as low as six pounds eighty five and six eighty five is the 100 week moving average And notice how the 100 week moving average does have previous form at the early 2017 of acting as support So it may do so in the future if you head south of them of the 100 week moving average That could be a that could be quite a negative sign And we could be looking head back down towards six pounds a share or perhaps even down as low as five eighty Which would be the 200 week moving average But as I mentioned it's been in a very strong upward trend since 2009 So we could see this in the longer term Upward move continue and if you do happen to happen to resume the upward trend that has been in for the last Number of years the first protocol to watch out for to the upside would be eight pounds 25 The recent all-time high and if you take on 825 the next big psychological number to keep out keep an eye out for Will of course be 909 pounds a share. That's all for me this week. Thank you very much