CAC 40: Technical rebound expected

(News Bulletin 247) – Without any major macroeconomic news today, investors will focus on geopolitics and results publications. While Israel said its forces struck targets of the Hezbollah militant group in Lebanon early this morning, the United States continues its diplomatic efforts to contain the conflict. As for the publication of results, the giants of the American rating will publish this week. In the meantime, within the Cac40, we are awaiting reactions today, firstly from Stellantis. The group has announced that it is aligning itself with the salary offers that General Motors and Ford have proposed to the UAW in the United States. Sanofi announced new positive results with Dupixent in children. Eurofins will begin a new share buyback program. The good news of the day should come from Dassault Aviation. Indeed, Saudi Arabia asked Dassault Aviation for a costed proposal for the possible acquisition of 54 Rafales. This request could only be a way for Saudi Arabia, according to certain sources, to force the hand of Germany, which has been blocking the sale of the Eurofighter Typhoon to Riyadh for several years. Still within the Parisian index we will follow the behavior of Worldline while many brands such as Auchan, Carrefour, Monoprix, Ikea and McDonald’s have been affected by a breakdown in their supplier’s payment processing. The Parisian index is now at its lowest level for 2022 with the luxury sector leading the sharp declines in recent weeks. A buying reaction on the supports should give rise to a technical rebound.

KEY GRAPHIC ELEMENTS

Technically the stock index is back on an important support level dating from 2022. In this area a buying reaction should be organized to form a rebound towards 7000 points.

FORECAST

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

This bullish scenario is valid as long as the CAC 40 index is above support at 6800.00 points.

Hourly graph

Daily Data Chart