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France 40 cash
I have looked at the France 40 before, but given the increased prospect of quantitative easing to be announced on January 22, I think European equity markets should theoretically do well.
The France 40 cash continues to test the downtrend drawn from the June high at 4,420 and continues to find good supply. I would look to buy a close above the downtrend, but until then I am neutral and am cautiously looking at the MACD - which is close to crossing below the signal line - and stochastic, which is about to cross under the 80 level. Good support is seen at the 20-day moving average (currently at 4,320) and a close below here could suggest better conditions for short positions.
I would look to buy a break of the downtrend, or subsequently look at short positions on a close through the 20-day moving average for a potential move to the lower Bollinger band at 4,166.