Current trend

One of the leading indexes of the European economy CAC 40 is corrected at around 7660.0. Until the corporate reporting season has started, investors' attention is focused on macroeconomic indicators. Today in France, inflation data was presented, reflecting a decrease in the Consumer Price Index in annual terms from 2.3% to 2.2%, which practically coincided with analysts’ expectations, and the CPI harmonized with EU standards dropped from 2.6% to 2.5%, which is a positive signal for both the European economy and the stock market.

The day before, auctions were held for the placement of bonds of France: three- and six-month bills were sold at 3.674% and 3.572% compared to 3.687% and 3.623% previously, and the rate on one-year securities amounted to 3.439%, decreasing from 3.477%, while 10-year bonds traded at 3.123% after 3.242% last week, the 20-year bonds yield dropped to 3.408% from 3.500%, and the 30-year bonds yield fell to 3.598% from 3.695%.

The growth leaders in the index are Vivendi SA ( 5.52%), Compagnie de Saint Gobain SA ( 3.07%), Teleperformance SE ( 2.54%).

Among the leaders of the decline are Airbus Group SE (–1.01%), Publicis Groupe (–0.93%), Orange SA (-0.90%), STMicroelectronics NV (–0.45%).

Support and resistance

On the daily chart, quotes continue to correct, gradually preparing to overcome the resistance line of the side channel with boundaries of 7700.0–7495.0.

Technical indicators are weakening the downward signal, actively slowing down. Fast EMAs on the Alligator indicator began to approach the signal line, narrowing the range of fluctuations, and the AO histogram, being close to the transition level, continues to form upward bars.

Support levels: 7495.0, 7245.0.

Resistance levels: 7700.0, 7920.0.

Trading tips

In the event of a reversal and continued growth of the asset, as well as price consolidation above the resistance level of 7700.0, long positions with a target of 7920.0 and a stop-loss of 7600.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 7495.0, short positions can be opened with the target at 7245.0. Stop-loss — 7600.0.