The CAC 40 recovered significantly at the start of the week, marked by a public holiday where activity remained limited.
The reassuring economic outlook from the Federal Reserve, which lowered its rates by 25 basis points on Thursday, helped to strengthen the recovery in the United States.
The central bank's ability to continue its monetary easing will, however, be tested by the economic impact that the next American president's policy will have and, immediately, by the data that will reach it in the coming weeks.
To follow, CPI inflation in the United States (Wednesday) as well as producer prices which could confirm the persistence of tension on underlying prices.
As for Asia, we will have to monitor the results of Singles' Day, the biggest online sales period of the year in China, which ends on Monday. Investors will be on the lookout for signs of recovery after recent measures “considered insufficient” to boost domestic consumption.
Analysis of open positions on futures indicates that downward pressure remains present, although a slight excess in the short term could favor a technical rebound. The Put/Call ratio is balanced.
On the future November
THE resistors are : 7436 et 7518, 7588,5 and 7640 then 7680 and 7663 then 7810.
THE supports are : 7380 then 7324 and 7298 even 7212 and 7168 then 7070 / 7050.
Intraday, the trend is bearish below 7518.
Graphically, the Future CAC40 (See attached 14-hour chart) is recovering after reaching a low point since mid-August on Friday.
As for technical indicators, the MACD histograms remain in a bearish trend, the RSI is in the neutral zone and volumes are decreasing.
To find a bullish bias, it will be necessary to cross the short-term alert zone located at 7,470 points, a level corresponding to the very close 20-day moving average at 7,479 points.
Crossing it would allow you to reach a neutralization zone and move away from the danger.
Then, the strong break and close of 7588 would reactivate the short-term uptrend.
On the contrarya return below 7380 would once again weaken the trend and accentuate the bearish bias, particularly if last Thursday's low were to be pushed into force and close.
The medium-term alert zone located at 7,298 points will constitute the last rampart before a possible continuation of the deterioration towards the low points reached at the beginning of August, around 7099/7050 points.
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