Market Overview
The CAC 40 cash index finished the day higher, up 1.33% to 7,846.55 points, with a large trading volume of €4.155 billion.
The Paris stock market rose because traders feel a little more hopeful about the Middle East. Reuters reported that a senior Iranian official said Pakistan passed a U.S. proposal to Tehran that could end the fighting.
Negotiations have not yet been scheduled, but Turkey and Pakistan are mentioned as possible hosts. Iran, however, says a cease‑fire and talks with the United States are not possible right now.
According to Press TV, Iran set five conditions before any peace deal: a complete stop to "aggressions" and "assassinations," solid guarantees that fighting will not restart, clear war reparations, an end to combat on all fronts, and international recognition of its right to control the Strait of Hormuz. No talks will begin until these demands are met.
Oil prices fell to about $98 a barrel after Iran announced the Strait of Hormuz would again allow ships it considers "non‑hostile" to pass.
Among the stocks, STMicroelectronics led the gains, up 4.49% at €28.745, followed by Sanofi (+2.94% at €80.06). Unibail‑Rodamco slipped 1.06% to €93.68.
Future (April) Technical Levels
Resistance points: 7,929.5 – 7,998 – 8,050 – 8,062 – 8,131.5 – 8,190 – 8,214.5 – 8,277.5 – 8,303 – 8,338 – 8,366 – 8,423 – 8,551.
Support points: 7,831 – 7,749.5 – 7,615 – 7,557.5 – 7,532 – 7,398.5.
The market looks bullish when it stays above 7,785 points.
Chart Analysis
After briefly dropping below its theoretical target, the index formed a bullish engulfing candle, a classic reversal sign. It is now moving inside an ascending triangle (shown in blue on the chart) and has hit a horizontal resistance at 7,892 points three times.
If the price breaks this level with higher volume, the next target could be around 8,277.5 points, which is the height of the triangle extended from the breakout point.
Intermediate resistance at 7,929.5, 7,998 and 8,050 points would act as early checks of strength. Better geopolitical news and lower oil prices would also help the upward move.
For a stronger long‑term outlook, the index should re‑enter its older upward channel, whose lower bound sits near 8,212 points. Filling the price gaps between 8,336‑8,358 and 8,473.5‑8,544 would further improve momentum.
Downside Risks
If buying pressure fades and the ascending support line breaks, the index could fall to the 7,600‑point area, which matches the height of the old channel. A break below that could push the price toward the next supports at 7,557.5 and then 7,398.5 points.
Indicator Summary
The CAC 40 is trading below its 20‑, 50‑ and 200‑day moving averages. The MACD histogram is rising but stays under the signal line. The RSI is in the oversold zone, while volume is higher than the previous session.
Conclusion
After reaching its short‑term target, the index has helped investors grow their portfolios, thanks to a more positive geopolitical backdrop and hopes of de‑escalation. We keep a bullish bias as long as the index stays above the March 23 lows. Near the lower end of the long‑term channel, investors may consider trimming some of their more aggressive positions.
