Good morning team,
The risk on environment continues with the US stock market printing another record high. Looking at the rest of the market especially in Europe, there appears to be a divergence as the French market is clearly lagging behind. This morning the ASX has had a strong open following Wall Streets lead. Moving into the European open later this evening it is likely the European Indices will also follow suit.
FRA40 (CAC)- Technical Analysis
The daily time frame is showing a potential bullish pennant formation.
4 Hour Charts
On the 4 hour charts we have seen a reversal Doji candle on a key support zone. This has resulted in a move higher when witnessed previously.
Trade Setup: BUY Market Execution, current price on focus markets 4940, stop loss 4840 and take profit left to run but targeting the 5138-5226 levels.
Stop loss: 100 pips
Contract sizing: 1 contract = $10 USD per pip. 100 pip stop loss = $1000 USD risk.
Contract size of 0.1 = $1USD per pip. 100 pip stop loss = $100 USD risk
Contract size of 0.2 = $2 USD per pip. 100 pip stop loss = $200 USD risk.
If the market breaks to the downside of the pennant formation we will close out the position.