CAC 40: Continued rebound

(News Bulletin 247) – The rebound should continue at the opening while investors await a series of publication of economic indicators today, notably the PMIs this morning in Europe. The latter should come out in contraction territory, that is to say below 50. Moreover, Christine Lagarde must speak at the beginning of the afternoon while within 48 hours the European Central Bank should decide on its monetary policy. These macroeconomic indicators will be juxtaposed with the numerous publication of results with in particular Orange and Hermès today within the Parisian index. We will also closely follow Interparfums, Id Logistics but also Virbac which published its results last night and announced an increase in its 2023 objectives. The evening will be lively with publications from Microsoft, Alphabet and Visa in the United States after trading. Apart from the publication of results, some stocks will be animated by their own sectoral news. The United Auto Workers union expanded its strike yesterday, with 6,800 workers walking out of Stellantis’ largest truck plant in the United States. Atos dropped yesterday as rumors of nationalization reached the Paris market.

KEY GRAPHIC ELEMENTS

Technically the index is back at an important support level as reported yesterday. A buying reaction took place as anticipated. The rebound must now continue to confirm Monday’s candlestick. The rebound could continue up to the 7000 point zone, the psychological price level. However, if yesterday’s lows were to be depressed then the sellers would regain control and the index could slide towards 6712 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