CAC 40 Climbs to Historic Levels
The French CAC 40 index finished the session 1.44% higher, posting a closing level of 8 362.09 points on a volume of €4.27 billion. Over the past week the index gained 2.04%.
Paris’ market continued to ride a solid bullish wave, reaching record highs despite a mixed global macro backdrop. Recent U.S. data showing a slowdown in job creation, a modest dip in unemployment and accelerating wages have revived debates over the Federal Reserve’s next move. While the Fed is expected to stay on the defensive side, the lingering tension in U.S. bonds has not dampened investors’ appetite for risk‑on assets.
At the same time, traders keep a close eye on political‑commercial developments, especially possible tariff‑related court rulings that could ease inflation pressures but also raise medium‑term fiscal concerns. In this environment, market participants assume that any adverse shock will likely be offset by regulatory or fiscal levers, preserving a constructive bias for equities – a bias that has fully benefitted the Paris exchange.
Technical Outlook on the January Future
Key resistance levels: 8 371.5, 8 465, 8 649.5, 9 280.
Major support zones: 8 281, 8 237.5, 8 193.5, 8 172.5, 8 152, 8 143.5, 8 101, 8 087.5, 8 067, 8 016, 7 978, 7 970, 7 933, 7 907, 7 880.5, 7 840, 7 793, 7 765.5, 7 744.5, 7 727.5, 7 707.5, 7 683.5, 7 655, 7 640, 7 584, 7 560, 7 540, 7 431.5, 7 378, 7 174.5, 7 060, 7 045, 6 885, 6 714.5, 6 524.
Intraday momentum remains bullish above 8 172.5. The future broke the long‑term re‑activation threshold of 8 281 points, confirming a technical extension toward the upper bound of the long‑term trading channel, currently around 8 461 points.
If the index closes again above 8 281, the bullish bias is reinforced. A close below this level would suggest a short‑term inability to sustain the upward drift, shifting the focus back to the intermediate support at 8 172 points. As long as that support holds, short‑term upside remains plausible.
Should the price fall beneath the medium‑term alert zone (8 016 – 7 933), a deeper correction toward the lower channel limit near 8 016 points could ensue. A breach of the lower support cluster (around 7 640 – 7 560) would open the path to the “neckline” of the triple‑top pattern located near 7 060 points.
Strategic Takeaway
At this stage we favour a selective stock‑picking approach, waiting for a clear, sustained re‑activation of the long‑term bullish trend before expanding exposure in dynamic or investor‑focused portfolios. If key technical thresholds fail, we remain ready to trim positions and employ protective hedges to safeguard capital and control volatility.