CAC 40: BOND MARKET CORRECTS DOWNWARDS
Scenario Timeframe Weekly Recommendation BUY STOP Entry Point 7200.5 Take Profit 7360.0 Stop Loss 7100.0 Key Levels 6940.0, 7080.0, 7200.0, 7360.0
Alternative scenario Recommendation SELL STOP Entry Point 7079.5 Take Profit 6940.0 Stop Loss 7150.0 Key Levels 6940.0, 7080.0, 7200.0, 7360.0
Current trend
One of the leading indices of the European economy, CAC 40, is correcting, and is now at 7149.0, smoothly turning towards growth due to the approach of the corporate reporting season.
In particular, this week the report of the luxury brand LVMH Moet Hennessy Louis Vuitton SE (LVMH) for Q3 2023 was published, and its results were disappointing. The company reported a drop in quarterly revenue by -9% to 19.96B euro from 21.21B euro earlier, which also turned out to be worse than forecast (20.57B euro). According to LVMH management, global demand for luxury goods is still experiencing a decline due to high inflation.
Local support for the index can also be provided by the bond market, where a downward correction has been seen: popular 10-year bonds of France are trading at a rate of 3.273%, which is lower than 3.485% at the beginning of the month, conservative 20-year bonds are trading at 3.711% (3.965% in early October); and global 30-year bonds, those that are least susceptible to local fluctuations, are trading at 3.793%, retreating from the recent high of 4.084%.
At the moment, the growth leaders in the index are: Thales ( 2.66%), Stellantis NV ( 2.17%) and Renault SA ( 1.99%).
Among the securities showing a decline are: LVMH Moet Hennessy Louis Vuitton SE (-6.46%), Alstom SA (-1.87%), Teleperformance SE (-1.61%), and Hermes International SCA (-1.50%).
Support and resistance
On the D1 chart, the quotes continue to be held within the global lateral channel with the borders of 7450.0–6950.0 and are ready to continue moving in the direction of growth.
Technical indicators continue to actively weaken the global sell signal: fast EMAS on the Alligator indicator are approaching the signal one, and AO histogram continues to form correction bars, being close to the transition level.
Support levels: 7080.0, 6940.0.
Resistance levels: 7200.0, 7360.0.
Trading tips
In case of continued growth and consolidation of the price above the local resistance level, at around 7200.0, one may open long positions with the target at 7360.0 and stop loss at 7100.0. Implementation time: 7 days and more.
In the event of a reversal and continued decline of the asset, as well as price consolidation below the local support level at 7080.0, short positions with the target at 6940.0 and stop loss at 7150.0 can be opened.
Scenario | |
---|---|
Timeframe | Weekly |
Recommendation | BUY STOP |
Entry Point | 7200.5 |
Take Profit | 7360.0 |
Stop Loss | 7100.0 |
Key Levels | 6940.0, 7080.0, 7200.0, 7360.0 |
Alternative scenario | |
---|---|
Recommendation | SELL STOP |
Entry Point | 7079.5 |
Take Profit | 6940.0 |
Stop Loss | 7150.0 |
Key Levels | 6940.0, 7080.0, 7200.0, 7360.0 |
Current trend
One of the leading indices of the European economy, CAC 40, is correcting, and is now at 7149.0, smoothly turning towards growth due to the approach of the corporate reporting season.
In particular, this week the report of the luxury brand LVMH Moet Hennessy Louis Vuitton SE (LVMH) for Q3 2023 was published, and its results were disappointing. The company reported a drop in quarterly revenue by -9% to 19.96B euro from 21.21B euro earlier, which also turned out to be worse than forecast (20.57B euro). According to LVMH management, global demand for luxury goods is still experiencing a decline due to high inflation.
Local support for the index can also be provided by the bond market, where a downward correction has been seen: popular 10-year bonds of France are trading at a rate of 3.273%, which is lower than 3.485% at the beginning of the month, conservative 20-year bonds are trading at 3.711% (3.965% in early October); and global 30-year bonds, those that are least susceptible to local fluctuations, are trading at 3.793%, retreating from the recent high of 4.084%.
At the moment, the growth leaders in the index are: Thales ( 2.66%), Stellantis NV ( 2.17%) and Renault SA ( 1.99%).
Among the securities showing a decline are: LVMH Moet Hennessy Louis Vuitton SE (-6.46%), Alstom SA (-1.87%), Teleperformance SE (-1.61%), and Hermes International SCA (-1.50%).
Support and resistance
On the D1 chart, the quotes continue to be held within the global lateral channel with the borders of 7450.0–6950.0 and are ready to continue moving in the direction of growth.
Technical indicators continue to actively weaken the global sell signal: fast EMAS on the Alligator indicator are approaching the signal one, and AO histogram continues to form correction bars, being close to the transition level.
Support levels: 7080.0, 6940.0.
Resistance levels: 7200.0, 7360.0.
Trading tips
In case of continued growth and consolidation of the price above the local resistance level, at around 7200.0, one may open long positions with the target at 7360.0 and stop loss at 7100.0. Implementation time: 7 days and more.
In the event of a reversal and continued decline of the asset, as well as price consolidation below the local support level at 7080.0, short positions with the target at 6940.0 and stop loss at 7150.0 can be opened.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.