Market Overview
Paris’s main equity index finished the session higher, gaining 0.81% to reach 8,429.03 points on a turnover of €4.376 billion. The rally followed Wall Street’s rebound and a calming of recent AI‑sector turbulence.
Investors are now waiting for the Federal Reserve’s minutes, hoping for clues on the future path of interest rates. Meanwhile, European markets saw the STOXX 600 push to fresh highs, buoyed by strong defence earnings.
Tech Spotlight: Nvidia and Meta
Nvidia posted a notable increase after announcing an expanded agreement with Meta. The deal calls for massive deployments of AI processors and networking gear in Meta’s data centres, featuring the latest Blackwell and Vera Rubin architectures. The partnership reinforces Nvidia’s role as a cornerstone of AI infrastructure, even as questions linger about the long‑term profitability of such heavy‑metal investments.
Future CAC 40 Technical Levels
The February futures contract is currently trading within a well‑defined range. Key resistance points sit at 8,407.5, 8,469.5, 8,672, 8,896, 9,188, and 9,374. Support levels are identified at 8,310.5, 8,246, 8,216, 8,188.5, 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, and 6,910.
Intraday, the market remains bullish as long as it stays above the 8,246 threshold.
Chart Interpretation
On the 14‑hour chart, the future CAC 40 is consolidating in a sideways trading range between roughly 8,408 (upper bound) and 8,281 (lower bound). The price failed to reach the theoretical target of the Wolfe Wave pattern at 8,246, leaving the range intact.
A clean break above the upper bound would signal a short‑term bullish resurgence, targeting an intermediate level around 8,528 and potentially extending toward 8,571, the upper edge of the long‑term upward channel.
Conversely, a fall through the 8,281 floor would invalidate the bullish attempt, steering the market back toward the Wolfe Wave target near 8,225. Below that, sellers could drive the price toward 8,157.5, with a further possible dip to 8,074 – the lower limit of the long‑term channel.
The triple‑top neckline, still valid at 8,174.5, acts as a decisive break point; a breach would likely accelerate a downward move.
Potential Scenarios
We are watching for a decisive exit from the current range. A clear breakout upward would merit a re‑allocation toward growth‑oriented portfolios, while a breakdown would keep defensive positioning in focus.
Given the present dynamics, the downside bias remains slightly stronger, prompting a modest increase in speculative short positions while staying ready to initiate targeted buys if a reversal pattern materialises near key chart levels.
Conclusion
The CAC 40’s modest rally reflects both AI‑related optimism and caution ahead of the Fed’s policy signals. Traders should monitor the 8,408/8,281 range closely, as its breach will dictate the next wave of market direction.
