CAC 40: Bearish gap at opening

(News Bulletin 247) – The Parisian index should open lower while Wall Street was down sharply last night after a difficult session for Alphabet, the parent company of Google. Today, investors will react to a new battery of results. We will therefore closely follow the stocks of Atos, Bnp Paribas, Carrefour and even Sodexo. We will pay particular attention to Danone which is raising its turnover objective and to Lectra, which, conversely, is lowering its forecasts for 2023. The results publications are important to follow as evidenced by the violent fall of Worldline yesterday which loses more than 59%. Conversely, the title of Dassault Systèmes was praised after a good publication and gained more than 7%. Today we also expect a lot of macroeconomic information. Firstly at 2:15 p.m. investors will know the decision of the European Central Bank concerning its key interest rate. Investors expect the status quo. Then it is the American data which will take over with the publication of figures for orders for durable goods as well as the PCE Core index, followed by quarterly GDP and finally weekly unemployment claims. Investors will return to the old continent to listen to Christine Lagarde’s remarks at 2:45 p.m. Investors are waiting to have more visibility on the trajectory of the ECB which remains highly uncertain regarding its rate policy. If the reduction in its balance sheet is more readable, the institution regularly modifies the contours of the conditions of this program.

KEY GRAPHIC ELEMENTS

The Parisian index will open sharply lower than the opening levels of the previous day. This zone constitutes a first intervention zone for purchasing. Then we can still strengthen our purchase if the index were to drop to 6800 points. In the event of a break of the recent lows, it will be necessary to become cautious again because the index could slip to the next support at 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 trading above support at 6885.00 points.

Hourly graph

Daily Data Chart