(News Bulletin 247) – While the American markets will be closed for Martin Luther King Day, investors will be keeping an eye on the World Economic Forum in Davos. Furthermore, the latest news calls for caution. Indeed, the Chinese central bank, the POBC, maintained its key rate, while the market expected a reduction. The presidential election in Taiwan offered a third consecutive mandate to the DPP, which does not help matters for Beijing which could be bellicose. On the macroeconomic level, no statistics are expected today. On the microeconomic side, we will monitor market reactions to Dassault Aviation, as the group has published its aircraft deliveries and orders. Catana should also lead the trend with a publication today. Danone announces the closure of a factory in Spain. The banking sector should be volatile today while across the Rhine, the CEO of Deutsche Bank is talking about a merger with another European player to gain size, according to Bloomberg. Speculation could involve Commerzbank or ABN Amro.

KEY GRAPHIC ELEMENTS

Technically the index is neutral in the short term. Indeed, it evolves in a very short-term range with a lower limit which corresponds to 50% of the red flow candle of January 3, 2024 and its support at approximately 7400 points. The first level which will be broken at the end will set the tempo for the rest. On the downside we will aim for a return to the 50-period moving average in daily data initially and on the upside we will aim for a return to 7600 points.

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 crossing 7585.00 points would revive the buying tension. While a break of 7406.00 points would restart the selling pressure.

News Bulletin 247 advice

CAC 40
Neutral
Resistance(s):
7585.00 / 7695.00
Support(s):
7406.00 / 7200.00 / 6948.00

Hourly graph

Daily Data Chart

CAC 40: A calm Monday (©ProRealTime.com)