CAC 40: Nvidia at the center of concerns

KEY GRAPHIC ELEMENTS

Investors are eagerly awaiting Nvidia’s earnings release, which will be the main catalyst today. The options market is anticipating a move of nearly 10% in either direction the day after the results. Analysts, on average, predict that the group will grow its revenue by more than 70% for the current quarter. Some analysts estimate an even greater increase. The release will provide insight into whether the artificial intelligence and semiconductor sector still has potential in the coming months based on the demand for Nvidia’s hardware. On the political front, US prosecutors have filed a new indictment against Donald Trump for the 2020 elections. Warren Buffett sold an additional $982 million in Bank Of America shares in addition to the many reductions he has made in recent weeks. In addition to Nvidia, the market is expecting many releases today in the United States, including Salesforce, Crowdstrike, Hp, Li Auto and Foot Locker. In Europe, we will be closely following Eiffage, Brunello Cucinelli, which will act as a catalyst for the luxury sector, Ageas and ID Logistics. On the macroeconomic level, there are few statistics to follow today apart from crude oil stocks at 4:30 p.m. while oil lost more than 2% yesterday during the session.

Technical Section: The Paris index is setting up a bearish engulfing trend inviting a consolidation towards the first support level. The first objective of this correction is therefore the return to the support point also of the 50-period daily moving average which should hold the prices.

FORECAST

Considering the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.

This bearish scenario is valid as long as the CAC 40 index is trading below the resistance at 7690.00 points.

Hourly data chart

Daily Data Chart