Possible short/medium-term Bullish action in FRA40

Author: Vin Coco, participant of the Analyst Contest

The market has today provided a new positive signal for the short term trend change for bear to lateral-bullish.

Although the medium-term trend is still set to the downside, today’s close seems to confirm a temporary stop, with the possibility of an upward move in the following days.

Elements to be considered for the Trading Forecast (Technical Analysis):


  • Today Bullish Engulfing Pattern has confirmed the previous level of recent Support establish by a Bull Hammer on May 06 (green arrows);
  • Rising channel/trend line is supporting price (Blue dotted line);
  • After a close above 4370 area, the Risk:Reward is interesting;
  • The possible bounce is at about 50% Fibo retracement;
  • Stochastic Divergence;
  • SMA 20 (blue) and 50 (red) are pointing down but still set in Bullish configuration.


  • The long term trend has still a negative bias;
  • Theprice is still almost lateral;
  • Theworst R:R scenario must take into account the R level defined on APR 6-8 by other 2 Bullish Piercing Patterns (green arrows and blue continue lines);
  • TheSMA200 is still above the price but quite distant so a bounce is possible in the next few days;
  • A decent close below 4200 is a clear sign of Bear trend resumption;
  • On Weekly chart (medium-long term) the SMA 200 and SMA20-50 are set in Bearish Mode, but the SMA200 could push up the price.

Daily Graph

Weekly Graph

Any comments and suggestions below are very welcome.

Source:: Possible short/medium-term Bullish action in FRA40

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

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