CAC 40: Soon back on support

(News Bulletin 247) – American indices consolidated yesterday as good figures from Netflix failed to compensate for the disappointment of Tesla’s publication in the United States. Jerome Powell, during his speech last night, announced that the central bank was unlikely to raise interest rates again in November. The central banker’s speech came as US rates reached new highs, sending stocks down. Indeed, the 10-year yield very briefly exceeded 5% last night, its highest level since July 2007. Today, operators are not expecting any macroeconomic news of sufficient importance to impact the markets. Investors will therefore have all their attention focused on the continued publication of results. Unfortunately for investors, the news keeps coming, with its share of disappointment. If Pernod Ricard reassured investors yesterday despite lower figures, Renault and Nokia did not succeed and disappointed the markets which did not hesitate to sanction them. This day we will pay particular attention to L’Oréal and Français Des Jeux. The latter should fall at the opening while the group lowered its forecast for growth in its turnover in 2023, after having announced a decline in its revenues in the third quarter.

KEY GRAPHIC ELEMENTS

Technically the Parisian index is still in a downward trend. The break of 7000 points is accompanied by a further deterioration and should push prices towards the test of 6800 points, a major low point for the year 2022. On this last level a buying reaction should take shape.

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