CAC 40: Room for rebound

(News Bulletin 247) – After difficult times on the equity indices, following comments from members of the European and American central banks, investors should organize a technical rebound. Indeed, the first technical levels reached are major supports. On the macroeconomic level, new announcements are expected today. We first await the publication of the minutes of the European Central Bank, as well as a speech from Christine Lagarde later in the afternoon. Across the Atlantic, weekly unemployment claims, building permits, oil stocks and finally the Philadelphia Fed’s manufacturing index are expected this afternoon. This information will be published as the US 10-year rate starts to rise again and the dollar appreciates, penalizing the euro and gold. Despite statistics above expectations, such as US retail sales, which came out above expectations yesterday, a majority of investors continue to believe in a rate cut from the Fed as of next March. . Geopolitical tensions continue in the Middle East where an American merchant ship was hit by gunfire. US forces have carried out new bombing operations on rebel sites in Yemen. Additionally, Pakistan carried out airstrikes on Iranian soil for terrorist reasons further raising tensions in the region. On the microeconomic level, operators will today welcome the results of Réalités and Virbac. We will closely monitor the semiconductor sector after the publication of the Taiwanese giant, Taiwan Semiconductor, whose quarterly profits were down but better than expected.

KEY GRAPHIC ELEMENTS

The index sets up a candlestick with a low wick signifying that buyers are returning to the market at these price levels. Today we will aim for the return of the index to the polarity of 7400 points. In the event of a daily close above 7406 points, we would then target the 20-period moving average in daily data.

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 7200.00 points.

Hourly graph

Daily Data Chart