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CAC 40 Candlestick Analysis

2/23/2023 10:10 AM

CAC 40, H4

On the four-hour chart, at the level of 7292.2, the price left the Falling Wedge pattern, and there is the Marubozu candlestick analysis pattern, which signals the leading positions of buyers, and the Engulfing pattern at the level of 7292.2, which warns traders about the continuation of the uptrend towards 7392.2 and subsequent movement to the area of 7740.5–8060.6. An alternative scenario is likely in case of a breakdown of the level of 7071.5, then the negative dynamics may intensify to the levels of 6644.6–5894.8.

CAC 40, D1

On the daily chart, there is a long-term "bullish" trend line that has been building for five months. At the moment, at the level of 7071.5, a Three Advancing White Soldiers candlestick pattern has formed, which indicates an increase in the upward dynamics of quotations, and at around 7292.2 there is a series of Hammer patterns warning about the likely movement of the trading instrument to the level of 7392.2, breaking which buyers will be able to raise the price even higher, in the area of 7740.5–8060.6. Nevertheless, one cannot rule out a correction to the level of 7071.5, the breakdown of which will mean a trend reversal to "bearish".

Support levels: 7071.5, 6644.6, 5894.8. | Resistance levels: 7392.2, 7740.5, 8060.6.

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