The renewed tension between Ukraine and Russia has triggered a new bout of weakness on already weakened European Indices. Downward pressure remains modest at this stage and the significant coverage ratio at current levels is slowing the movement. However, reading the options positions indicates that the European Indices are flirting with supports under which sudden downward accelerations are probable, including the 7000/7050 zone on the Cac40 Index. The configuration on the American Indices remains in the consolidation stage at this time. This evening Tuesday, after the close on Wall Street, operators will follow Wal-Mart's quarterly publication.
On the future December
THE resistors are : 7308 7375 et 7448, even 7505 then 7600.
THE supports are : 7182.5 then 7053 and the area 6894/6936 et 6722, 6610 or even 6518.
Intraday, the trend is bearish below 7375.
Graphically, the Future CAC40 (See attached graph in 14 Hours), continues its gradual decline although the movement and volumes are accelerating. It thus returns to test the lows of the previous week and the intermediate support at 7182, the last stop before reaching the bottom of the range at 7053. We recall that the upper limit of the large zone, which was our short-term alert, is located at 7448.
Below the 7000/7053 zone, the risk of capitulation would be major.
However, the significant portfolio coverage ratio allows us to envisage, as in recent days, significant rebounds. However, the trend will remain bearish intraday as long as 7375 is resistance at close and in the short term below 7448.
BFM trading plan for November 18
The choice of BNP Experts
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