France 40 (FR40EUR) Continues to Trade in the Overbought Region, Sellers May Emerge

France 40 (FR40EUR) Continues to Trade in the Overbought Region, Sellers May Emerge

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

France 40 (FR40EUR) Long-term Trends: Bullish
France 40 index is in an upward move. The index has fallen to level 4600 and resumed upward. On November 10 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the pair will rise and reverse at level 1.272 Fibonacci extension.

FR40EUR – Daily Chart

Daily Chart Indicators Reading:
It is currently at level 72 of the Relative Strength Index period 14. It is in an uptrend zone and above the centerline 50. The index is now trading in the overbought region of the market. Sellers may emerge in the overbought region. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

France 40 (FR40EUR) Medium-term Trend: Bullish
On the 4- hour chart, the index is in an uptrend. On November 10 uptrend; a retraced candle body tested the 78.6% Fibonacci extension. This indicates that the index will reach level 1.272 Fibonacci extensions. That is the market will rise and reach level 1.272 and reverse. That is at the high level 5598.

FR40EUR – 4 Hour Chart

4-hour Chart Indicators Reading
The index is currently above the 80% range of the daily stochastic. It is trading in the overbought region. There is a likelihood of a sellers’ emergence in the overbought region.

General Outlook for Italy France 40 (FR40EUR)
France 40 is in an uptrend. All the indicators are pointing to the overbought region of the market. The implication is that sellers may emerge. On the other hand, is a strong trending market the overbought condition may not hold


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.