Facing the Uncertainty, the CAC 40 Index is Redefining Its Path
By Philippe Garnier
January 16, 2023 – 10:22 AM
Updated January 16, 2023 – 10:22 AM
The technical configuration has improved since last week, as our trend indicators, which were on the verge of reversing, have now become bullish.
Every Thursday, Lesoir Patrimoine et Bourse offers a technical analysis of the CAC 40: supports, resistances, strategy, and advice. The Paris Stock Exchange is hesitant in an environment with little visibility. In the United States, the possibility of a gradual increase in tariffs has reassured, while the inflation level remains stable. In France, François Bayrou gains time, which should calm the interest rates. However, it is the annual reports of companies that will set the pace of the markets.
The graphically, the CAC 40, which fell briefly to 7353 points last week, has recovered and is now approaching 7,600 points. The technical configuration has improved since last week, as our trend indicators, which were on the verge of reversing, have now become bullish. A validation of the current trend towards 7804/7863 remains possible.
For the time being, the index is trading within a support range of 7420 to 7532 points. A close above 7532 points would signal a rebound towards 7636 points. The index may continue to rise if it breaks above this level.
It is now that the CAC 40 is facing the most important challenge in the coming weeks, as the annual reports of companies will be published. The market is eagerly awaiting the release of these reports, which will set the tone for the remainder of the month. Will the momentum continue, or will the markets take a hit? The answer to this question will depend on the quality of the future reports.
As the index tries to break through the 7532 point barrier, investors are left wondering what to do. Will they take advantage of the current momentum and enter the market with confidence, or will they wait for the uncertainty that comes with the company reports to dissipate? The answer to this question will depend on the trajectory of the CAC 40 in the coming weeks.
For now, the technical configuration is in the favor of the bulls, but the market is expected to remain cautious in the face of the upcoming reports. The CAC 40 is at a crossroads, where the path will determine the direction it will take for the remainder of the year. The outcome is far from certain, but one thing is clear: the market is holding its breath in anticipation of the next move.
