CAC 40 Closes Higher
The French CAC 40 index finished the day up 0.67%, settling at 8,181.17 points on a turnover of €3.67 billion. The rally was anchored by a calming of precious‑metal markets and a modest retreat in oil prices.
Why the Market Turned Positive
Earlier in the week, investors were jittery after a sharp pull‑back in gold and silver, which dragged mining stocks and weighed on overall sentiment. By mid‑week, gold stopped its 10 % slide and began a technical bounce, easing pressure on the broader market.
Gold and Silver Dynamics
Precious metals had surged to historic highs earlier this year, buoyed by economic uncertainty, a weak dollar, and heavy speculative bets. A recent policy move by the U.S. Federal Reserve helped unwind some of those extreme positions, allowing gold to recover modestly.
Oil Price Impact
Energy stocks fell as Brent crude slipped back toward $66 a barrel and WTI hovered near $62. The decline reflects hopes that geopolitical tensions between the United States and Iran may ease, reducing the risk premium on oil.
Macro Outlook for the Eurozone
Manufacturing activity in the euro area remains in contraction for the third month, with new orders still weak despite a slight uptick in output. The mixed signals keep investors cautious on European equities.
Technical Snapshot of the CAC 40 Futures
The February CAC 40 future has been volatile. After an initial dip, the index rallied and found a low at 8,033 points, which has acted as a reliable short‑term support. The market now oscillates between roughly 8,033 and 8,186.5 points, forming a classic trading range.
Key Support and Resistance Levels
Resistance: 8,205.5 • 8,247 • 8,259 • 8,310.5 • 8,469.5 • 8,672 • 8,896 • 9,188 • 8,374
Support: 8,186.5 • 8,172 • 8,150 • 8,116 • 8,089.5 • 8,046 • 8,034.5 • 7,995 • 7,917 • 7,867.5 • 7,817.5 • 7,770 • 7,606.5 • 7,548 • 7,456.5 • 7,303.5 • 7,134.5 • 6,910
Intraday Bias
As long as the index stays above 8,110 points, the short‑term bias remains bullish. A break below 8,172 would signal a return to the lower half of the range and could trigger a move toward the next support cluster around 8,116 points.
Conclusion
Overall, the CAC 40 is navigating a consolidation phase. Traders should watch for a decisive break above the upper range (≈ 8,186.5) to confirm a sustained uptrend, while a sustained drop below the mid‑range could reopen the path toward the 8,000‑point level. Maintaining disciplined position sizing and staying alert to macro developments will be key in the coming sessions.