CAC40: Blueprints 9.
After a beautiful diamond, which has triggered a bearish market for about two weeks, the French index bounced back ahead of the FOMC meeting's disclosure, where a liftoff is probably going to occur. From a historic point of view a hike in interest rates have always led to a correction. Nonetheless, the market was in a bearish movement that was close to sending it back to August's low.
Another thing can make things worse for the bulls: another bearish market on Oil, which has reached a multi year low, three sessions ago, would worsen the situation, the French benchmark being sensitive to Oil prices, since Oil & related companies represent 10% of the benchmark's weight, through Total S.A.(CHXEUR:FPP) and Technip S.A.(CHXEUR:TECP). Another slide in the Oil market will inflict more damage to the French benchmark, should a bearish market be the result of today's FOMC.
Oil and the benchmark are closely related. As a fall in Oil prices can render any bearish market worse for the benchmark, as well as an increase in Oil prices can help sustain any bullish movement.
Re-entering the bearish market, as a result of the FOMC meeting, will send the French benchmark south, seeking 4387.72, with 4501.44 as a primary objective.
A breakout of 4673.96, will send it seeking 4783.38, with 4727.63 as a primary objective.
The daily Pivot Point is around 4587.04. The daily support levels are around 4547.32 and 4480.2. The daily resistance levels are around 4654.12 and 4693.84.
FPP & CAC40
TECP & CAC40
Another thing can make things worse for the bulls: another bearish market on Oil, which has reached a multi year low, three sessions ago, would worsen the situation, the French benchmark being sensitive to Oil prices, since Oil & related companies represent 10% of the benchmark's weight, through Total S.A.(CHXEUR:FPP) and Technip S.A.(CHXEUR:TECP). Another slide in the Oil market will inflict more damage to the French benchmark, should a bearish market be the result of today's FOMC.
Oil and the benchmark are closely related. As a fall in Oil prices can render any bearish market worse for the benchmark, as well as an increase in Oil prices can help sustain any bullish movement.
Re-entering the bearish market, as a result of the FOMC meeting, will send the French benchmark south, seeking 4387.72, with 4501.44 as a primary objective.
A breakout of 4673.96, will send it seeking 4783.38, with 4727.63 as a primary objective.
The daily Pivot Point is around 4587.04. The daily support levels are around 4547.32 and 4480.2. The daily resistance levels are around 4654.12 and 4693.84.
FPP & CAC40
TECP & CAC40
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.