CAC 40: THE PRICE MOVES AWAY FROM THE SUPPORT LINE OF THE ASCENDING CHANNEL 8500.0–8000.0

Current trend

CAC 40 index quotes remain at 8205.0 amid the completion of the publication of corporate reporting and a stable situation on the bond market.

Today, the financial results of the resource management optimization company Veolia Environnement VE SA will be presented, whose revenue is projected at 11.61 billion euros, which is slightly lower than the same figure a year earlier, and earnings per share (EPS) may drop to 0.44 euros from 0.45 euros recorded in the first quarter of 2023. Some better results are expected from the Euronext NV stock exchange: revenue is expected to be 395.64 million euros, up from 372.3 million euros a year earlier, and earnings per share of 1.45 euros, after 1.37 euros shown in April 2023.

The situation on the domestic bond market is more reminiscent of a sideways trend than a directional movement. The day before, auctions were held to place short-term bills of exchange in France, showing the absence of clear dynamics: three- and six-month notes were placed at 3.781% and 3.670%, respectively, compared to 3.803% and 3.666% previously, and one-year notes were offered at a yield rate of 3.481%, which is higher than the 3.460% of the previous offering.

The growth leaders in the index are Teleperformance SE ( 3.85%), Stellantis NV ( 3.70%), Sanofi SA ( 2.36%).

Among the leaders of the decline are Safran SA (-1.41%), Airbus Group SE (-1.18%), Pernod Ricard SA (-1.07%), Publicis Groupe (-0.88%).

Support and resistance

On the daily chart, quotes continue to grow, moving away from the support line of the ascending channel 8500.0–8000.0.

Technical indicators have again issued an upward signal and are signaling an intensification of the upward correction: fast EMAs on the Alligator indicator remain close to the signal line, expanding the range of fluctuations, and the AO histogram, being close to the transition level, continues to form corrective bars.

Support levels: 8140.0, 7940.0.

Resistance levels: 8260.0, 8460.0.

Trading tips

In the event of a reversal and continued growth of the asset, as well as price fixation above the resistance level of 8260.0, buy positions with a target of 8460.0 and a stop loss of 8200.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 8140.0, short positions can be opened with the target at 7940.0. Stop-loss — 8200.0.