European stocks lower

FRA40 Technical Analysis Report 10 November, 2020

  • FRA40 rising inside accelerated impulse wave
  • Likely to rise to 5540.00

FRA40 index continues to rise sharply inside the short-term accelerated impulse wave 1 – which previously broke above the multi-month resistance level 5240.00 (which stopped the previous multi-month wave (A) at the star of June). The breakout of the resistance level 5240.00 was preceded by the breakout of the resistance trendline of the extended down trend from the start of June – which added to the bullish pressure on this stock index.

Given the strength of the active impulse waves 1 and (C), FRA40 index is expected to extend the gains toward the next resistance level 5540.00 (former minor resistance from March) – which is the target price for the termination of the active impulse wave 1. Strong support now stands at the aforementioned price level 5240.00.


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