CAC 40 Closes Lower
The French CAC 40 cash index ended the session down 0.65%, at 7,993.49 points, with a light trading volume of €2.8 billion.
The Paris stock market is slipping as the conflict in the Middle East reaches its seventh day. Tensions remain very high between Iran, Israel and the United States. Fighting with missiles, drones and artillery continues. Israel says the war has entered a "new phase" and is striking targets in Tehran and the southern suburbs of Beirut.
At the same time, the strategic Strait of Hormuz stays mostly blocked, pushing crude oil prices to about $90 a barrel – the highest level in almost two years.
Defense stocks are helping the market. Thales jumped 2.07% to €241.3, leading the CAC 40, while Safran gained 0.44% to €317.7.
Future Market Levels
Key resistance levels to watch: 8,551; 8,632; 8,810; 8,910.
Important support levels: 8,430.5; 8,373.5; 8,355; 8,338; 8,326; 8,279.5; 8,212; 8,191.5; 8,139; 8,131; 8,065; 8,048; 8,026; 7,991; 7,873; 7,853; 7,831; 7,740.5; 7,615.5.
In intraday trading the bias is bearish below 8,045 points.
Technical Outlook
The CAC 40 future is still falling and has entered a very sensitive technical zone. The lower edge of its long‑term up‑trend channel is now under pressure. Three consecutive closes below this line would signal a strong seller dominance.
Short‑term supports at 8,065; 8,048; and 8,026 points have not stopped the decline. If the index breaks the upper edge of the old trading range (7,991.5 points), the down‑trend could speed up, potentially pushing the index toward 7,600 points – the projected bottom of the long‑term channel.
On the other hand, a close inside the long‑term channel would be the first sign of improvement. Traders would need three consecutive closes above the lower channel edge to confirm a shift. A break above the former support‑turned‑resistance at 8,212 points would also help turn the bias more positive.
Two recent down‑gaps show that sellers are still active. Filling the "continuation" gap (8,336–8,358 points) could be an early sign of stabilization, while only filling the "breakout" gap (8,473.5–8,544 points) would meaningfully change the current trend.
Indicator Summary
- Price stays above the 20‑day, 50‑day and 200‑day moving averages.
- MACD histogram is falling below its signal line.
- RSI is in the oversold zone.
- Trading volume is higher than the previous session.
Portfolio Outlook
Our portfolios keep a safety margin while the CAC 40 remains negative for the year. We do not plan any rapid moves yet. Our buying zones are clearly defined, and we will start adding positions gradually when market conditions improve, with a second buying phase likely around 7,750–7,600 points for the CAC 40 cash index.
