FRA40 Short Setup: Key Levels Near 7732/49 on 4-Hour Chart
Monthly TF: Last month's
F40 price action showed a strong bearish continuation bar, suggesting downward potential despite the overall bullish monthly trend. We're currently in a phase 2 pullback, which means short positions can be considered until the downside move concludes.Weekly TF: The weekly chart presents a more complex picture, with over four weeks of bearish sideways ranging bars. There have been rejections from the bottom, hinting the monthly downward move might be nearing its end. However, the last two weeks' price action, despite being low tests, hasn't really achieved anything that might suggest or confirm the downward move has come to an end.
Daily TF: On the daily chart, FRA40 has been ranging for the past few weeks. By combining the monthly (down/pullback) and weekly (bearish sideways) biases, it seems prudent to take a short position from the top of the range towards the bottom.
For the 4-hour chart, we will enter a short position with a Sell Limit around 7732.64/7749.48. We'll place our Stop Loss above 7760.00 to manage risk, and our Take Profit will be the range's low around 7498.00.
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