Market Summary
The CAC 40 closed lower, down 1.78% to 8,112.02 points, on a volume of €3.316 bn.
Paris’s main index extended its decline, weighed down by fresh geopolitical and trade uncertainty from the United States. Recent statements from the U.S. administration about potential tariffs on European exports—particularly on automobiles and luxury goods—have reignited fears of a trans‑Atlantic protectionist wave. The prospect of duties reaching up to 25% without a trade agreement is pushing investors toward safer assets.
Key Technical Levels for the February Future
Resistance zones: 8,310.5 – 8,469.5 – 8,672 – 8,896 – 9,188 – 8,374.
Support zones: 8,246 – 8,216 – 8,188 – 8,150 – 8,116 – 8,089.5 – 8,046 – 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 momentum remains bullish above the 8,246‑point support. The chart has recently tested a Wolfe wave reversal target near 8,100 points. After that test, the index found a technical bounce, preserving the intermediate support at 8,116 points and aiming to close the opening gap whose low sits around 8,252.5 points.
If the price fills the gap and firmly breaks above 8,246, the next upside target aligns with the long‑term bullish channel ceiling, roughly 8,505 points. Conversely, a clear break below the 8,116 support would shift the outlook toward the lower band of the medium‑term channel, near 7,970 points.
Should the market breach the 7,606.5–7,548 zone, a deeper correction could unfold, potentially reaching the triple‑top neckline around 7,134.5 points and the strategic pivot at 6,910 points.
Risk Management Perspective
In response to the technical signals, we have taken partial profits on hedging positions within the Dynamic and Investor portfolios. The chart pattern that triggered the move has been realized, prompting a cautious re‑allocation. While the Dynamic portfolio continues to receive measured additions when new technical cues appear, any substantial increase in risk exposure will only occur after a confirmed breach of the re‑activation thresholds.
