Current trend

One of the leading indexes of the European economy CAC 40 is corrected around 7496.0.

Yesterday, auctions on French short-term bills were held, the rates for which did not increase for the first time in a long while: 12-month notes were placed at 3.657%, lower than 3.659% earlier, and 6-month and 3-month ones – at 3.634% and 3.588%, respectively, which is also inferior to 3.644% and 3.613%. The decline in indicators may be the first signal that the pressure on the stock index is starting to ease.

The corporate reporting period continues, and Legrand, the global leader in electrical products, released its data yesterday: despite revenue of 2.15B euros, below the forecasted 2.19B euros, earnings per share reached 1.2 euros, beating the expected 1.19 euros. Today, investors will pay attention to the statistics of the French insurance and investment group of companies AXA Group, whose income may grow from 31.800B euros to 52.918B euros, while earnings per share will remain around 1.64 euros. Also, the profit of the banking holding Societe Generale SA, according to experts, will be adjusted from 6.67B euros in the previous quarter to 6.41B euros, and earnings per share – from 1.0500 euros to 0.9228 euros.

At the moment, the growth leaders in the index are ArcelorMittal SA ( 2.43%), Sanofi SA ( 2.24%), and Unibail-Rodamco-Westfield SE ( 1.54%).

Among the securities showing a decrease, there are Teleperformance SA (–2.84%), Bouygues Telecom (–1.93%), Danone SA (–1.59%), and Groupe Renault (–1.55%).

Support and resistance

On the daily chart, the quotes consolidated above the resistance line of the global downward channel with dynamic boundaries 7300.0–6950.0, preparing to continue the growth.

Technical indicators keep a buy signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO histogram is forming corrective bars in the buying zone.

Resistance levels: 7600.0, 7800.0.

Support levels: 7380.0, 7120.0.

Trading tips

Long positions may be opened after the price rises and consolidates above 7600.0 with the target at 7800.0 and stop loss 7500.0. Implementation period: 7 days or more.

Short positions may be opened after a reversal, reduction, and consolidation of the price below 7380.0 with the target at 7120.0. Stop loss – 7460.0.