France 40 (FR40EUR) Is Consolidating Above Level 5600, a Breakdown Is Likely

Key Resistance Zones: 5900, 6000, 6100
Key Support Zones: 5400, 5300, 5200

France 40 (FR40EUR) Long-term Trend: Ranging
FR40EUR index is presently consolidating above level 5600. The index is characterized by Small body candlesticks called Doji and Spinning tops. These candlesticks describe the indecision between buyers and sellers about the direction of the market.

Daily Chart Indicators Reading:
The index is currently at level 62 of the Relative Strength Index period 14. FR40EUR is now trading in the overbought region. The 21-day SMA and the 50-day SMA are sloping upward indicating the upward move.

France 40 (FR40EUR) Medium-term Trend: Bullish
On the 4- hour chart, France 40 is rising and in an upward move. On the January 6 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the pair will rise and reverse at level 1.272 Fibonacci extensions. That is at the high of 5689.20 high.

4-hour Chart Indicators Reading
France 40 is currently above the 70% range of the daily stochastic. The index is in a bullish momentum and it is approaching the overbought region of the market. The moving averages are still sloping upward indicating the uptrend.

General Outlook for France 40 (FR40EUR)
France 40 is trading in the overbought region as per the lower and higher time frame. The index has been consolidating near the resistance zone for a possible breakout.



Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results