CAC 40: New test of the lowest

(News Bulletin 247) – Investors benefited yesterday from a general rebound in the equity sector. For example, the Dow Jones recorded its highest one-day percentage increase in almost a month. The remarks of the President of the Philadelphia Fed, Patrick Harker, helped to reassure the markets. He repeated that in his opinion the American central bank had probably completed the cycle of monetary tightening. The geopolitical news shows a certain activism on the diplomatic level to put in place a de-escalation of the conflict, again helping to reassure the markets. Without any other specific news, investors should procrastinate while waiting for company results. Only Aéroport de Paris has published among the major Parisian values. The group reported group traffic in September up 15.1%, to 31.2 million passengers, or 99.9% of 2019 traffic. Today we are expecting Mercialys as well as Bolloré. On the macroeconomic level, European operators will first become aware of the Zew index at 11:00 a.m. French time. Then they will receive the US retail sales figures at 2:30 p.m. French time.

KEY GRAPHIC ELEMENTS

Technically the Parisian index should once again test its recent lows. Indeed, yesterday’s candle showed the inability of buyers to exceed 50% of last Friday’s selling candle. Short-term downward pressure therefore remains. We will monitor the return to the support of 6885 points, which should generate a technical rebound.

FORECAST

Considering the key graphical factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.

This bearish scenario is valid as long as the CAC 40 index is below resistance at 7200.00 points.

Hourly graph

Daily Data Chart