CAC40 H1 Chart Analysis, August 24, 2023
Will CAC40 close the gap soon?
After yesterday’s strong increases in American indices, also European stocks are rising. The French CAC40 opens with an upward gap today. Investors tend to close them during the same or one of the future sessions.
Bollinger Bands on the chart contain a median (orange line) from which the marked standard deviation is as much as 4. The shooting star wick reaches beyond this deviation, and the candle itself warns of upcoming declines. In this case, the return of the median can be expected. It occurs in the same place as EMA50 (blue line) and Fibo retracement 0.382 (7249).
A decline of around 0.43% can be expected if this scenario materializes.
The strategy based on returning to the median after reaching the Bolliger band was already described yesterday. As it turned out, the EURUSD exchange rate returned to the forecasted levels.
https://blog.simplefx.com/2023/08/23/eurusd-falling-ahead-of-jackson-hole
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