CAC 40: CAC40 Under Resistance

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European markets have concluded the week on a contrasting tone, but the CAC has extended its upward series, a sign of persistent investors’ interest in the actions of the euro zone despite an environment responsible for uncertainty. The debates around the conflict in Ukraine remain central: Donald Trump met Vladimir Putin in Alaska before receiving Volodymyr Zelensky on Monday in Washington on Monday, then European leaders in stride, to try to sketch a peace plan. These developments, interpreted by markets as likely to influence energy flows and geopolitical balances, increased volatility on oil, down after the Trump – Poutine summit. In this climate, investors are also waiting for Jackson Hole’s Jackson Symposium Powell on Friday, an appointment that could specify the trajectory of American interest rates, while American household inflation anticipations have straightened and consumer confidence fell in August.

On the Parisian side, Teleperformance recorded the best CAC performance, earning more than 4 % against a backdrop of redemptions for cheaply after several difficult weeks. Valneva continued its rebound (+8 % at the end of the week). The title should again be carried by the authorization of its IXCHIQ® vaccine against Chikungunya in Canada for the over twelve years, an announcement which confirms its international anchoring after the extension of indication obtained in Europe in the spring.

In the United States, several titles moved the weekend. Unitedhealth jumped after the announcement of an investment of $ 1.57 billion by Berkshire Hathaway, a sign of a return of confidence of large institutional investors despite a fall of 40 % of the title since January, linked to the rise in medical costs and to quarterly results below expectations.

Tesla, conversely, remains under pressure: its sales in the United Kingdom fell by 60 % in July to fall to less than 1,000 units, while the manufacturer has granted significant discounts up to 40 % to the rental companies to sell its stocks, illustrating the difficulties of volume management on this market.

Finally, Novo Nordisk is expected to be in the spotlight after the FDA approved the use of its Wegovy treatment against the Mash, a liver disease that affects nearly 15 million Americans, strengthening the group’s advance in the GLP-1 segment against Eli Lilly.

Key graphics elements

Technically, the index has returned to a resistance zone, materialized by a Doji type candlestick and the opening of a Haussier gap. Operators can consider aggressive sales on this level by aiming for a return to mobile averages, with strict money management given the annoying nature of the operation and the need to quickly protect the positions.

FORECAST

In view of the key graphic factors that we 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 rating above the support at 7682.00 points.

Hourly data graphics

Daily data graphics