Good morning Traders!
As many of the world’s markets have rallied following March banking turmoil, the French index has made it’s way back to the area of it’s all times highs.
France 40
Last week the market has tested once again it’s resistance level of around the 7400. After the latest test at the beginning of March, the market has reacted to this level with a push lower to test the Weekly chart breakout level of the area around 6800.
The latest test of the all times highs, saw sellers returning into the market, however so far, they haven’t been able to push the price lower before meeting with more buyers at the support level of the 7300 area.
The Daily and the Weekly chart are back into a confirmed uptrend, and if the market will break through the 7400 from here, it will also be printing a new Higher High on the Daily, Weekly and the Monthly timeframes.
I am looking for further compression of price underneath this strong resistance level, potentially on the lower timeframes, to allow for a potential tighter stop loss. However if the market will break the 7400 area without further compression, then I will be looking for a potential retracement setup, if and when the market will pullback to test this level from above.
Happy Trading!
