Facts:

• RSI[14] reached 62.2
• The price is approaching the previous peak (around 8630)
• The previous peak stalled at the FIBO upswing around 161.8

Recommendation: Short position (Sell) on FRA40 at market price

• Target price (Take Profit, TP): 8315
• Stop Loss (SL): 8800

FRA40 (D1)

Source: xStation5

OPINION:

The upward momentum suggests conditions favorable for a downward correction and an attempt to complete a double-top pattern. The RSI indicator is particularly important, as it has reached a level above which the price has regularly undergone downward corrections over recent months. Methodology and assumptions:

• The recommendation is based on technical chart analysis, in particular EMA moving averages and Fibonacci levels.
• The target level was determined based on Fibonacci levels, EMA moving averages, and the historical size of corrections.
• The protective stop loss order was set based on a favorable risk-to-reward ratio and with reference to a Fibonacci level.