CAC 40 Edges Higher Amid Geopolitical Shifts and Payment Stock Surge
The French CAC 40 index finished the session slightly in the green, rising 0.08% to 8,069.17 points on an average volume of €3.834 bn.
The Paris market managed to turn positive after spending most of the day in the red. The shift was largely driven by fresh geopolitical signals from the Davos summit and a surprising comment from the U.S. President, who ruled out a military move on Greenland and suggested a negotiated acquisition instead. While the president reiterated his interest in the Arctic island for security reasons, the calmer tone eased investor nerves for the moment.
Sector Movers
Danone led the losers, sliding 8.42% to €67.40 after a recall of infant formula in Singapore over a possible bacterial contamination. The same health scare has also touched Nestlé and Lactalis.
On the upside, payment‑solution companies surged. Edenred jumped 10.47% to €18.995, while Pluxee rose 7.05% to €12. Both gains are linked to market rumours that Brazil might temporarily suspend a pending reform after legal challenges filed by the two firms.
Future February Outlook
Key resistance levels: 8,311 – 8,338 – 8,399.5 – 8,470 points.
Key support zones: 8,274.5 – 8,247 – 8,216 – 8,182 – 8,116 – 8,045.5 – 8,014.5 – 7,963 – 7,904 points.
Intraday bias remains bullish as long as the index stays above 8,028 points.
Technical Snapshot
At 14:00, the CAC 40 futures chart displayed a classic "pin‑bar" Japanese candlestick around the 8,050‑point mark – a pattern often preceding a short‑term upward reversal. Sellers have struggled to break through this technical support, but a full recovery still requires filling the downward gap opened on 20 January (8,107 – 8,087.5 points).
Long‑term momentum will only re‑ignite after three consecutive closes above 8,247 points. Until then, the market bears two open gaps that keep the upside fragile. A breach of the 8,014.5‑point floor could trigger a pull‑back toward the larger supports near 7,731 and 7,603 points.
Indicators show the index trading above its 50‑day and 200‑day moving averages. The MACD histogram is turning negative, the RSI hovers near oversold territory, and trading volume has dipped compared with the previous session.
Strategic Takeaway
Even though the Wolfe Wave target was reached, we keep a modest short exposure on speculative index instruments within the dynamic portfolio and maintain a hedge in the investor portfolio. The focus stays on a technical scenario that could bring the price back to the 8,014.5‑point support – a level that may present buying opportunities for stocks with solid fundamentals and favourable chart patterns.
