FR 40 Technical Analysis | FR 40 Trading: 2019-06-20 | IFCM
IFC Markets Online CFD Broker

FR 40 Technical Analysis - FR 40 Trading: 2019-06-20

Positive data bullish for FR40

French retail sales increase and private business sector expansion were better than expected. Will the FR40 advance continue?

Recent French economic data were better than expected after final Q1 GDP report: Markit’s final reading of composite purchasing managers index for May confirmed business activity expansion accelerated in May with services sector also recording an expansion. And retail sales growth increased in April: retail sales rose 3.1% over year after 1.2% increase in March. At the same time trade deficit declined to 5 billion euro from 5.5 billion in March. Positive French data are bullish for FR40.

FR40 rises above MA(200) 06/20/2019 Technical Analysis IFC Markets chart

On the daily timeframe FR40: D1 is retracing higher after hitting 4-month low in the beginning of June, and has risen above the 200-day moving average MA(200). The price is rising after breaching above the resistance line. These are bullish developments.

  • The Parabolic indicator has formed a buy signal.
  • The Donchian channel indicates uptrend: it is tilted up.
  • The MACD indicator is above the signal line with the gap widening. This is a bullish signal.
  • The RSI oscillator is reaching overbought zone but has not yet breached into it.

We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 5540.24. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower fractal at 5339.66. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (5339.66) without reaching the order (5540.24) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

OrderBuy
Buy Stop Above 5540.24
Stop loss Below 5339.66

IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger