France 40 (FR40EUR) Is in a Strong Uptrend, the Overbought Condition Fails to Hold

Key Resistance Zones: 5800, 6000, 6200
Key Support Zones: 5000, 4800, 4600

France 40 (FR40EUR) Long-term Trends: Bullish
France 40 index is in an uptrend. A bullish trend line is drawn showing the support levels of price. The index has risen and it is approaching level 5100. Previously the index was facing resistance at level 4750. The market has gone up and may likely reach the high of level 5500.

Daily Chart Indicators Reading:
France 40 index has risen to level 71 of the Relative Strength Index. This implies that the market has reached the overbought region. Sellers may emerge in the overbought region. The 21-day SMA is a support line for the index. The SMAs are sloping downward.

France 40 (FR40EUR) Medium-term Trend: Bullish
On the 4- hour chart, the market is in an uptrend. This correction candle body is testing the 0.236 Fibonacci retracement level. This indicates that the index will rise to 4.236 Fibonacci extension level. The first target of the upward move is at the level 1.272 Fibonacci extension level. After this target, the market will continue its upward move to a high of 4.236 Fibonacci extension level.

4-hour Chart Indicators Reading
The price is presently above the 80% range of the daily stochastic. The market is in the overbought region. However, the overbought condition may not hold in a trending market. Sellers may emerge at a later date. The SMAs are sloping upward indicating the uptrend.

General Outlook for France 40 (FR40EUR)
France 40 has resumed the uptrend and the market has reached the first target. According to the Fibonacci tool, the market will reach the high of level 4.236. All the indicators are indicating that the index is in the overbought region.



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