 Hello and welcome to the chart of the week of video with me, David Madden. Today's date is Thursday the 31st of October So happy Halloween and the time has just gone 1205 GMT and this week's chart of the week is Renault the French car maker And it's been a bit of a scary time. Pardon the pun for Renault shareholders Recently the stock has dropped to its lowest level since this is early 2013 today And basically there's a few reasons why sure price of Renault has been a decline First of all the kind of global demand for cars is in decline particularly in countries like China Kind of a combination of a global economic slowdown Certainly in relation to Brexit the US China trade spat and the fact that China itself is slowing down These have all come in contributed to kind of a decline in global car sales Simultaneously, there's also been a rise in the demand for electric car sales electric vehicles and Tesla finally kind of even though they had some turbulence in the last year or so They seem to be kind of more or so getting their action together in terms of production So they're doing well Not too long ago. There was an attempt for a tie-up between Fiat Chrysler and Renault But that that potential deal was blocked by the French government Here a stakeholder in the French company and they were concerned about where the jobs were jobs still be located in France post merger and In the past 40 hours, there's been a lot of news in the car sector yesterday we heard about a possible tie-up between Fiat Chrysler and Puget and that's actually been confirmed today that both sides are looking at going ahead So it looks like we're going to have a new major car group Fiat Chrysler and Puget and that is thankful to effectively create a much larger organization There's there will be synergies and likely to evolve from that Which obviously put which which obviously be good for Fiat Chrysler and Puget will put additional pressure on Renault So hence where we're seeing Additional pressure being applied to the share price of the French stock today As I said, it's today's today's session has seen a drop to a level last seen In early 2013 to give indication of how bearish sentiment is on that particular stock Particularly from a shorting point of view It's a bit and very much a downward trend for quite some time And if you do matters, you're going to break below this area here in a 44 Spot 83 a level that was last seen a Level that was last seen in April 2013 if you break below that the next year to keep on that For will be the kind of big psychological number of 40 euros per share It is also worth pointing out if you take a look on the other chart at the MacD indicator of MacD histogram As the share price is pushing lower. We're seeing a steady increase in negative momentum So as the market is driving lower, we are see that being confirmed by a steady increase in negative momentum So the momentum is clearly to the downside if you do see a bit of a snapback. We could find some support potentially Come from this area here up around the tourney moving average the red line which comes to play at 55 spot 39 You will notice that This red line here the market running to resistance at this this But that the tourney moving average in early October and you can so the metric has been important in the past It makes it more likely it will be important in the future Obviously, there are no guarantees is a good example of here upon the stock market trade above its tourney moving average Come to be above it the clothes above it in the middle of September, but the market allows traded lower and that you got onto press lower lows It's only really if you manage to take out the Mid-September high in a 58 spot 11 could then we begin to think you know what maybe the kind of wider downward trend as a Has been shaken off and if you go beyond that level the next 30 k per hour for the kind of psychology important 60 60 euros per share mark And if you go beyond that we could be looking at heading up towards the April highs of in around 64 spot 19 That's all for me this week. Thank you for tuning in and please tune in next week. Thank you very much