FR40: Descending Channel

FR40, Daily

In the Daily timeframe, FR40, in a long-term downtrend, has formed a descending channel pattern. The price reached the upper trend line after bouncing off support. DeMarker is out of the oversold zone, and Parabolic SAR indicates the possibility of a rise, but the sentiment remains bearish, making it necessary to consider two scenarios.

• If the price breaks the trend line above 7370, a bullish trend to 7700 will start;

• A bounce from the trend line will bring FR40 back to 7060 support;