Current dynamics

During the Asian session, quotes of one of the main indices of the European economy, the CAC 40, are adjusting around 7219.0, remaining under pressure from the multi-directional financial statistics of the component companies.

The fall of the instrument could have been faster if it were not for the positive inflation data in the Eurozone, based on which the officials of the European Central Bank (ECB) are likely to continue their "dove" rhetoric, reducing the interest rate from 3.50% for the fourth time since 2019, thereby easing the debt burden on businesses and households. Thus, on a monthly basis, the indicator was adjusted to −0.1% to 0.3%, and on a yearly basis — it remained at the level of 2.0% (the upper limit of the target range set by the regulator), while the base value, excluding the cost of food and fuel, was recorded in the area of 0.2% on a monthly basis and 2.7% on an annual basis. Today, investors paid attention to the dynamics of the French business activity index: in November, the indicator rose from 92.0 points to 97.0 points with preliminary estimates of 95.0 points, confirming the gradual recovery of the national economy and supporting the CAC 40 quotes.

On the domestic stock market, in contrast to demand, yields on all securities are rising again: 10-year bonds are trading at 3.122%, up from last week's figure of 3.083%, 20-year long-term bonds - 3.391% in the district compared to 3.365%, and 30-year bonds - 3.590% from 3.564% previously.

At the moment, the growth leaders in the index are Edenred SA ( 2.69%), Kering SA ( 1.46%) and Societe Generale SA ( 1.07%).

Among the documents that showed a decrease, Renault SA (−2.17%), Thales SA (−1.46%), Capgemini SE (−1.98%) and Vivendi SE (−0.53%) stand out.

Support and resistance levels

On the daily chart, the instrument is approaching the support line of the descending channel with dynamic limits of 7600.0–6750.0.

Technical indicators are once again reinforcing the sell signal: fast EMAs on the Alligator indicator are fixed below the signal line, widening the oscillation range, and the AO oscillator histogram, far from the transition level, forms corrective bars.

Support levels: 7130.0, 6800.0.

Resistance levels: 7300.0, 7620.0.

Business scenarios

Short positions should be opened after the price is fixed below the support level of 7130.0 with the target of 6800.0. The stop loss should be set above the support level, at the mark of 7220.0. Implementation period: 7 days or more.

Long positions are worth opening after price consolidation above the resistance level of 7300.0 with a target of 7620.0 and a stop loss of 7200.0.