CAC 40: the Paris Stock Exchange is testing key resistance

The support at 6400 points will be decisive for the outlook for the CAC 40

In terms of technical analysis, the outlook for the CAC 40 remains bullish despite the presence of the index under major resistance at around 6600 points. Nevertheless, the risk/return ratio is clearly in favor of the sellers under this resistance, especially after such a bullish rally (+10%) in such a short time (1 month).

Although a pullback, or at least a breather, seems like the most likely short-term scenario, it will be better to wait for a pullback below last week’s low at around 6400 points to eventually put in place strategies. shorts.

A drop below this support would open the way to a pullback that could extend to 6100 points, then 5750 points in the longer term, as the index is likely to return to test its lows for the year if the outlook economic conditions continue to darken and/or central banks turn out to be even more aggressive in their monetary tightening.

Entry: Sale below 6400 points

Stop: 6500 points

Objective: 6100, then 5750 points

Risk/return ratio: >3

Follow the evolution of the CAC 40 price with IG.

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