LONDON, Nov 25 (Reuters) - Euro zone shares marked time on Tuesday after a two-day rise that left some key regional indexes in “overbought” territory on a technical basis.
An unexpected rise French industrial morale helped put a floor on the market, however, building on a strong German business sentiment survey on Monday.
At 0811 the euro zone Euro STOXX 50 was flat at 3,213.10 points. Germany’s DAX was up 0.1 percent while France’s CAC was flat.
All three indexes closed in “overbought” territory on Monday, based on their 7-day Relative Strength Index, a momentum indicator which compares the magnitude of rises and falls in prices.
“The market was pretty ‘overbought’ so a small pullback (in the Euro STOXX 50) from here towards 3,190 is normal,” said Roelof-Jan van den Akker, a senior technical analyst an ING in Amsterdam said.
“A short-term consolidation making a higher bottom for a couple of weeks before the next rally starts would be my most likely scenario.”
The broader FTSEurofirst 300 index of pan-European shares was down 0.1 percent at 1,385.96 points.
Kingfisher fell 2 percent after Europe’s No. 1 home improvement retailer posted an 11.8 percent decline in third quarter profit, hurt by a weak French market and foreign currency movements. (Reporting By Francesco Canepa; Editing by Alistair Smout)