CAC 40: Indices and Boeing try to land softly

(News Bulletin 247) – It’s officially the recovery and the operators who had one more week off will not recognize the market. Indeed, after an imperturbable nine-week rise, the American indices began the year with one of their worst starts to the year in ten years. Indeed, operators were still euphoric about potential rate cuts that would occur from March. The latest information delivered in the Fed minutes or through the latest macroeconomic statistics suggests that this pivot will occur, but later this year. In the meantime, in the shorter term, operators will find good news on the political front. Indeed, Republican and Democratic leaders reached a $1.66 trillion agreement on the level of U.S. federal spending for 2024, a move that implies that Congress should once again avoid a costly government shutdown. On the microeconomic front, two emblematic issues in the United States will drive the trend. First up is Merck, which is in talks to buy cancer drugmaker Harpoon Therapeutics Inc. for about $700 million, according to Bloomberg News. Then, Boeing should also be volatile at the open. The American civil aviation authority, the FAA, announced the grounding of 171 Boeing MAX 9 planes for inspection, after the loss of a fuselage part on board an Alaska Airlines aircraft. This announcement comes at a time when the aircraft manufacturer had already experienced setbacks and the group is heavily in debt. The aircraft affected by this damage had only been in service for eight weeks.

KEY GRAPHIC ELEMENTS

Technically the stock index tries to stabilize after a technical correction. The support of 7400 points should continue to generate rebounds towards the 20 daily period moving average and the 50% of the January 3 candle which serves as short-term resistance. Intraday we will therefore seek to favor rebounds towards the 20 daily period moving average. The break of 7400 points will give a new bearish potential at 7200 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 7406.00 points.

Hourly graph

Daily Data Chart