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Every Thursday, Figaro Patrimoine et Bourse takes a technical look at the CAC 40: support, resistance, strategy and advice.
The Paris Bourse is not digesting Donald Trump’s election. It is undermined by the possible increase in customs duties in the United States, an uncertainty amplified by the tension in long rates. These two factors are penalizing the market, as is asset allocators’ infatuation with Wall Street.
Graphically. The fall of the CAC 40 was violent. After a few days of hesitation following the US presidential election, investors sold the index. It first broke 7315 points before logically closing the 7282/7292 gap. It even looked for support further down, bottoming out at 7158! For the time being, it remains above 7,200 points.
The momentum is bearish, but the CAC has reached the objective of the technical figure. It could now test the main short-term support at 7124 points. A breach of this level at the close would trigger an extension to 7029/7070, a maximum at this stage.
On the other hand, if the benchmark reached 7200 points…