Trade Alert
Together with the other indices, the French CAC 40 was also hit by heavy selling, but it managed to find support near the October low of 4896.
But what's interesting here is that the daily chart could be forming a harami candlestick pattern, hence why we recommend to observe today's close and act on it either tomorrow or Friday. The only issue with this potential harami formation is that it wouldn't be your typical textbook one, where in this scenario, the smaller candle would be of the opposite color. that's why we will be very cautious of the idea of a potential reversal, as the books suggest. Instead, we could keep a close eye on the highlighted areas, a break of which could open the path in the direction of their break.
As always, don't forget your SL.
Together with the other indices, the French CAC 40 was also hit by heavy selling, but it managed to find support near the October low of 4896.
But what's interesting here is that the daily chart could be forming a harami candlestick pattern, hence why we recommend to observe today's close and act on it either tomorrow or Friday. The only issue with this potential harami formation is that it wouldn't be your typical textbook one, where in this scenario, the smaller candle would be of the opposite color. that's why we will be very cautious of the idea of a potential reversal, as the books suggest. Instead, we could keep a close eye on the highlighted areas, a break of which could open the path in the direction of their break.
As always, don't forget your SL.