CAC 40: Under bearish pressure

(News Bulletin 247) – While the Parisian index was not accompanied by the American indices, yesterday, shares consolidated throughout the session. Indeed, while the macroeconomic information published was negative, with Germany’s gross domestic product (GDP) falling by 0.3% over the whole of 2023, Philip Lane, the chief economist of the European Central Bank , indicated that rates should not fall too quickly as this could fuel a resurgence in inflation. Operators expect in the coming hours that Christine Lagarde, the president of the ECB, will speak at the World Economic Forum in Davos. In the meantime, investors continue to bet on rate cuts starting in March. Some stocks were shaken yesterday during the session, notably Dassault Aviation after orders and deliveries of aircraft which disappointed the market. Atos was also in turmoil after announcing a reshuffle of its management team in addition to a cash flow warning. We will continue to monitor the banking sector as Deutsche Bank reportedly has ambitions to form a large European banking group. Stellantis, under downward pressure for several days, announced that it would temporarily lay off around 2,250 workers at its Mirafiori factory in Turin in the coming weeks to cope with weak demand. Ipsos, close to its historical records, announced the acquisition of Jarmany, a company in the United Kingdom.

KEY GRAPHIC ELEMENTS

Technically the index is in a very short-term range, still stuck between its support at 7400 points and the 50% of the candle of January 3, 2024. The first boundary that breaks will set the tempo for the future. The 20-period moving average is now bearish and should put in difficulty the desire of buyers to regain 7,500 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.

Hourly graph

Daily Data Chart