Current trend

One of the leading indices of the European economy, the CAC 40, is correcting at 7567.0 amid macroeconomic statistics and the situation on the domestic bond market.

So, on Friday, the monthly report on the dynamics of business activity in France was published: in August, the indicator was 99.0 points, rising from 95.0 points, which returned it to a stable trajectory after a decline in July. Tonight, auctions will be held to place short-term bills of France. According to forecasts, rates will be lower than previous estimates: three-month bills may fall to 3.477% from 3.502%, and annual ones – to 2.992% from 3.029%.

In turn, the bond market continues to decline, supporting the index quotes: the yield on 10-year debt securities fell to 2.930% from last week's peak of 2.987%, and on 20-year ones – to 3.278% from 3.315%.

The leaders of growth in the index are Accor SA ( 2.91%), Veolia Environnement VE SA ( 1.76%) and Publicis Groupe ( 1.73%).

Among the leaders of decline are Dassault Systemes SE (˗0.44%), Capgemini SE (˗0.27%), Hermes International SCA (˗0.18%), Danone SA (˗0.07%).

Support and resistance

On the D1 chart, quotes continue a local correction, moving away from the resistance line of the descending channel 7500.0–7100.0.

Technical indicators strengthen the new buy signal: fast EMAs on the Alligator indicator are moving away from the signal line, expanding the range of fluctuations, and the AO histogram, being close to the transition level, forms ascending bars.

Support levels: 7500.0, 7300.0.

Resistance levels: 7640.0, 7910.0.

Trading tips

In case of a reversal and continued growth of the asset, as well as consolidation of the price above the resistance level of 7640.0, buy positions with a target of 7910.0 and a stop-loss of 7500.0 will be relevant. Implementation period: 7 days or more.

In case of a reversal and continued decline of the asset, as well as consolidation of the price below the support level of 7500.0, sell positions with a target of 7300.0 may be opened. Stop loss – 7600.0.