Current trend

One of the leading indices of the European economy, CAC 40, is correcting at around 8134.0 against the backdrop of mixed corporate reports and local growth in the bond market.

At the end of last week, the financial results of the oil and gas company TotalEnergies SE were published, reflecting income of 51.88 billion euros, which turned out to be much worse than the forecast of 59.14 billion euros, and earnings per share amounted to 2.14 euros, exceeding 2.07 euros which analysts were counting on. In turn, industrial and technology group Safran SA recorded revenue of 6.28 billion euros, which exceeded expectations at 6.13 billion euros. Asset management company Amundi SA posted revenue of 824.0 million euros, beating the 818.1 million euros forecast, and earnings per share of 1.55 euros versus the forecast of 1.54 euros.

The bond market also continues to rise, with the 10-year note trading at 3.064%, topping 3.000% for the first time since late November, and the 20-year bonds yield at 3.427%, up from 3.545% recorded last week.

The growth leaders in the index are Compagnie de Saint Gobain SA ( 6.88%), Kering SA ( 3.25%), Schneider Electric SE ( 2.81%).

Among the leaders of the decline are STMicroelectronics NV (-2.51%), BNP Paribas SA (-1.97%), Danone SA (-1.69%), Eurofins Scientific SE (-1.50%).

Support and resistance

On the daily chart, quotes continue to grow, moving away from the support line of the ascending channel 8300.0–8000.0.

Technical indicators have again issued an upward signal and are signaling an intensification of the 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: 8050.0, 7860.0.

Resistance levels: 8190.0, 8340.0.

Trading tips

In the event of a reversal and continued growth of the asset, as well as price fixation above the resistance level of 8190.0, buy positions with a target of 8340.0 and a stop-loss of 8100.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 8050.0, short positions can be opened with the target at 7860.0. Stop-loss — 8150.0.