CAC40 End‑of‑Day Summary
The French CAC40 index fell by 0.67% and finished the day at 7,908.74 points. Trading volume reached €4.15 billion.
Why the Market Dropped
After a long weekend, the Paris market closed lower. Tensions in the Middle East stay high. The United States set a deadline for Iran, raising fears about oil supply disruptions in the Strait of Hormuz. These worries make traders more careful.
European stocks had out‑performed U.S. stocks earlier this year, but the gap is narrowing. Companies face weaker profit outlooks because budget support is fading, energy prices stay high, and the European Central Bank is tightening policy. Inflation pressures are also returning.
April Future Contract Levels
Resistance levels: 7,979; 8,030.5; 8,053.5; 8,070.5; 8,109.5; 8,138.5; 8,159.5; 8,178.5; 8,192.5; 8,247; 8,270; 8,283.5; 8,341.5; 8,420.5.
Support levels: 7,949.5; 7,862.5; 7,838.5; 7,811; 7,790.5; 7,746; 7,709; 7,685.5; 7,626; 7,606; 7,579; 7,477; 7,328.5; 7,200; 7,092.5; 7,466.5; 7,330; 7,164.
When the price stays above 8,053.5 during the day, the short‑term trend is considered bullish.
Chart Interpretation
The future CAC40 recently bounced off the top of its recent trading range (7,685.5 – 7,862.5 points). If it breaks the intermediate resistance at 8,053.5, the next target could be the lower edge of the long‑term upward channel at 8,237 points.
Breaking above that channel would reopen two gaps: one near 8,391 points and another near 8,549.5 points. If the triple‑top pattern that has existed since May 2024 is invalidated, the index could aim for about 9,570 points.
On the downside, falling below 7,862.5 points would warn of a possible trend reversal. A breach of the major support at 7,685.5 points could push the price toward 7,509.5 points and further down to the weekly reversal line around 7,092.5 points. As long as this level holds, the long‑term bias stays neutral.
Investment Outlook
We keep adding to dynamic and investor portfolios to support the current rebound, which remains mainly technical. At the same time, we stay disciplined by taking profits near key levels because geopolitical uncertainty may still cause volatility.
