Current trend

The CAC 40 index is correcting at 7573.0 amid the publication of financial statistics from component companies.

The pharmaceutical company Sanofi SA reported revenue of 13.44 billion euros, which exceeded the forecast of 13.02 billion euros, and profit per share amounted to 2.86 euros after 1.78 euros in the previous quarter. In turn, the aviation concern Safran SA recorded revenue of 6.64 billion euros, failing to reach the expected 6.68 billion euros, and losing 6.83 billion euros over the previous period.

In addition, tomorrow, data on consumer spending in France will be published: the growth rate is expected to slow to 0.1% from 0.2%, which will have a restraining effect on the growth of gross domestic product (GDP), which in the third quarter could add 0.3%, without having a serious impact on the annual figure, which is likely to remain at 1.0%.

Bond yields are gradually increasing, which does not allow the index to return to a stable growth trajectory: the rate on 10-year debt securities rose to 3.013% from 3.000%, and on 20-year ones to 3.392% from 3.385%.

The growth leaders in the index are ArcelorMittal SA ( 3.37%), Vinci SA ( 2.88%), Danone SA ( 2.52%).

Among the decline leaders are TotalEnergies SE (˗0.90%), EssilorLuxottica SA (˗0.64%), Orange SA (˗0.59%), Airbus Group SE (˗0.43%).

Support and resistance

On the D1 chart, quotes continue to correct, again approaching the “neckline” of the “head and shoulders” reversal pattern with an implementation level around 7620.0.

Technical indicators again strengthen the buy signal: fast EMAs on the Alligator indicator remain above the signal line, maintaining a narrow range of fluctuations, and the AO histogram, being close to the transition level, forms ascending bars.

Support levels: 7465.0, 7220.0.

Resistance levels: 7620.0, 7810.0.

Trading tips

In case of a reversal and continued growth, as well as the price consolidation above the resistance level of 7620.0, buy positions with a target of 7810.0 and a stop-loss of 7550.0 will be relevant. Implementation period: 7 days and more.

In case of a reversal and continued decline, as well as the price consolidation below the support level of 7465.0, sell positions with a target of 7220.0 can be opened. Stop loss – 7530.0.