CAC 40: New attempt at rebound

(News Bulletin 247) – Despite a market still under pressure across the Atlantic, the Parisian index is not breaking. Indeed, he demonstrated yesterday by holding the entire session despite numerous macroeconomic and microeconomic information. First of all on the macroeconomic level, the European Central Bank has kept its interest rates unchanged. According to the notes communicated by the European Central Bank on the occasion of this event, the prices of goods and services are no longer increasing as much. In the coming months, inflation is expected to fall further. But new conflicts and tensions in some parts of the world have made the future more uncertain.” Investors wanted to see dovish announcements, thus favoring the stock market. On Wall Street we were eagerly awaiting the publication of American GDP figures. The American economy grew faster than expected by operators in the third quarter, at its fastest pace in almost two years. Strong consumer spending was the main driver of the 4.9% annual increase in gross domestic product. This information should not, however, call into question the Fed’s upcoming decision to maintain its key rate, according to consensus, but could potentially impact future meetings. Among the values ​​published last night, Amazon reassured operators. Cost reductions and growth in advertising activity contributed to the increase in quarterly sales and profits. Separately, the company reaffirmed that growth in its core cloud computing business was stabilizing. In the automotive sector, Ford cast a chill as the group withdrew its annual turnover forecast pending the signing of an agreement reached with the main American workers’ union in the automobile sector. Today, on the microeconomic level we will follow Sanofi, Safran and Amundi, in France, in particular, and the American oil giants: Exxon Mobil and Chevron. Finally, investors will wait at 2:30 p.m. French time for the publication of the PCE index.

KEY GRAPHIC ELEMENTS

Technically the index demonstrates resilience with successive candlesticks composed of green bodies demonstrating the underlying buying pressure. A larger rebound could arise from this tangle of candlesticks and propel the Parisian index to the symbolic price level and also resistance of 7000 points in the coming hours. A return to the 6850 points zone would constitute a new buying opportunity.

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 6885.00 points.

Hourly graph

Daily Data Chart