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Without going, without energy, the CAC 40 managed to grab 0.59% on Tuesday to 7,240 points, in very timid volumes, at the heart of a flattened diamond congestion figure. For the second session in a row, the three-color index finished a good distance from its session highs, leaving a significant upper shadow on each of the two corresponding candles. The market remains in expectation as it approaches Jackson Hole, a town in Wyoming which, by metonymy, designates the annual conference of the world’s great fundraisers.

“The fear of having higher interest rates for longer has shaken the bond market: the 10-year US rate has stretched above 4.3%, the highest level since 2008 and the mortgage rate at 30 years is also at its highest for 21 years at 7.2%” notes the bond management team of Auris. “This week, all eyes will be on Wyoming, the American state that hosts the big money makers for the annual meeting in Jackson Hole. J. Powell will speak on Thursday morning, so the appointment is made! “

The speech of its president, Jerome Powell, will be fiercely scrutinized, and the least of his elements of language interpreted… Especially after the tone and tenor of the debates highlighted by the Minutes of the meeting of the policy committee July currency.

In terms of statistics, the Richmond Fed’s manufacturing index came out up at -7, beating a pessimistic consensus.

In terms of values, the star of the day was clearly the video game publisher Ubisoft, which won 8.5% to 29.19 euros, driven by the announcement of the acquisition of Activision Blizzard’s “cloud streaming” rights, whether the acquisition of this group by Microsoft is completed. Cable maker Nexans gained 3.8% as Goldman Sachs raised its price target and confirmed its buy recommendation.

Across the Atlantic, major equity indices closed in mixed fashion, with the Dow Jones contracting 0.51% to 34,288 points and the Nasdaq Composite managing to climb 0.06% to 13,505 to the day before NVidia’s highly anticipated quarterly release.

Concerning the Nvidia file alone, it will constitute a reference barometer for the future. The one who now presents himself as the world leader in computing – just that! -, historical specialist in graphics cards, intends to be a major strategic player in AI. In the spring, Nvidia passed the threshold of 1,000 billion dollars on the stock market, and joined the club of “tech that counts”: FANGAM+Tesla. Needless to say, expectations for Wednesday night are gigantic.

The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, fell 0.28% to 4,387 points.

A point on the other risky asset classes: around 08:00 this morning on the foreign exchange market, the single currency was trading at a level close to $1.0860. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $79.80.

On the agenda this Wednesday, a battery of PMI activity indicators in the Euro Zone and the United States. The German industrial component, in very early estimates for the current month, will be particularly scrutinized. It is expected, at 9:30 a.m., at a sad 38.9 according to the market consensus.

KEY GRAPHIC ELEMENTS

From August 10 to 18, the flagship tricolor index melted from one terminal to the other of the vast flattened rhombus (diamond) which has concentrated its nervous oscillations since May 24, breaking the line of neckline of a bearish chart pattern at 7,250 points. A continuation of the oscillations within the diamond is envisaged. Any exit from the latter will give a direction provided that volumes, and a sectoral federation, are at the rendezvous… Signs of fatigue within this diamond are already perceptible.

FORECAST

In view of the key graphic factors that we have identified, our opinion is neutral on the CAC 40 index in the short term.

We will take care to note that a crossing of 7250.00 points would revive the tension in the purchase. While a break of 7084.00 points would relaunch the selling pressure.

The News Bulletin 247 board

CAC 40
Neutral
Resistance(s):
7250.00 / 7500.00 / 7585.00
Medium(s):
7084.00 / 7015.00

Hourly data chart

Chart in daily data

CAC 40: Breathless within a diamond (©ProRealTime.com)

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