CAC 40: Resistance to profit-taking temptations

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Note firstly the closure of Wall Street this Thursday, due to the traditional and sacred Thanksgiving holidays, and therefore the absence of precious benchmarks for Paris, whose flagship index, the CAC 40, is expected to be stable this Thursday at the opening. On Wednesday, it managed to gain 0.43%, investors remaining confident in the scenario of a soft landing for the American economy, with a continued decline in inflation at the same time.

All eyes were on NVidia (-2.46%), which published excellent quarterlies the previous evening. Investors, legitimately greedy at these valuation levels, have been choosy about the prospects, although they are high.

The graphics chip giant has once again revealed extraordinary figures that exceeded expectations in the third quarter. The group anticipates a fourth quarter above expectations but also declining sales in China, with Washington’s restrictions on chip exports to the country. The only downside of an extraordinary course. For Alexandre Baradez (IG France), “Nvidia’s results could also influence the trajectory of other Nasdaq megacaps (Microsoft, Alphabet, Apple and Meta) whose prices have also been driven this year by this theme of artificial intelligence .”

In terms of statistics, the agenda expanded on Wednesday, with new weekly registrations for unemployment benefits, still close to the 200,000 mark, and orders for durable goods, stable in October, below expectations, in excluding transport equipment. RAS regarding revised data from the American Consumer Confidence Index (U-Mich) to 61.3.

On the values ​​side, Elior regained 6.2%, after a publication considered reassuring. The collective catering group, which calls itself “more agile and stronger”, announced that it was profitable again and reduced its loss at the end of its staggered 2022/2023 financial year. Interparfums increased by 5.3%, after having announced that it was counting on a turnover of around 880 million to 900 million euros in 2024. On the other hand, nothing is going well for Casino (-2 .1%) which is now targeting an operating loss of 100 million euros in France for the current year, while Casino still anticipated an operating profit at the end of October.

On the other side of the Atlantic, the main equity indices once again finished in the green, before the big Thanksgiving weekend. The Dow Jones gained 0.53% to 35,273 points and the Nasdaq Composite, with a strong technological coloring, 0.46% to 14,265 points. The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.41% to 4,556 points.

An update on other risky asset classes: around 8:00 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to $1.0910. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $76.20.

On the agenda this Thursday, a battery of PMI activity indicators, for services and industry in Europe this morning. Summary data for the entire Euro Zone will be published at 10:00 a.m.

KEY GRAPHIC ELEMENTS

The 7,200 points, the technical issue of last week, were exceeded, with the weekly candle closing at its peaks. The flagship Parisian index is now entering a phase of digesting its gains, in the form of a consolidation whose graphic pattern is still being determined, after 3 stars doji of rank.

FORECAST

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

We will take care to note that a crossing of 7406.00 points would revive the buying tension. While a break of 7200.00 points would restart the selling pressure.

Hourly graph

Daily Data Chart