CAC 40 Drops Hard! Fed's New Tone Sparks Sharp DeclineCAC 40 (French Index) on a 1-hour timeframe initiated a short trade using the Risological Trading Indicator. The sharp decline aligns with fundamental market dynamics influenced by the Federal Reserve's policy stance.
Trade Highlights:
Entry : Short position initiated based on bearish sentiment.
Current Trend: Sharp downward movement observed.
Reasons for Decline:
At 8:15 AM, the December futures contract for the CAC 40 fell 110.5 points, settling at 7277.5 points, indicating a 1%+ decline at the open.
The Federal Reserve cut its key interest rates for the third time this year, reducing them to a range of 4.25% to 4.50%.
Fed Chair Jerome Powell signaled a "new phase" of monetary policy, characterized by a slower pace of rate cuts, contrary to market expectations.
Updated projections show only two rate cuts next year, compared to the four previously anticipated by investors, fueling bearish momentum.
Indices Europe
Few like European equity, but they should - GER40 to new highs Few like investing in Europe at present, and while France remains constrained by political risk, the German equity index (GER40) is doing everything right from a technical and price action perspective, and positioning for further upside seems the play.
Having held the 19k support level throughout November, the bulls have built a solid platform to progress, taking the index through downtrend resistance & backed by solid range expansion and the index closing on weekly highs.
The ATHs are now being tested, subsequently, a closing break through 19.679 would encourage momentum accounts to chase the upside as we roll into the ECB meeting (12 Dec) and year-end.
A daily close below the 5-day EMA would be a signal to turn cautious, flipping to outright shorts on a closing break of 19k. But for now, long and strong seems the higher probability position.
Good luck to all.
Will Religious Tensions Reshape Europe's Financial Future?Europe stands at a critical crossroads where religious tensions are silently transforming its financial landscape, with the CAC 40 emerging as a crucial barometer of this unprecedented shift. What many market analysts initially dismissed as temporary social friction has evolved into a fundamental force reshaping investment strategies and corporate valuations. The extraordinary security measures deployed for the France-Israel football match – requiring 4,000 police officers – signals a new reality that transcends simple event management, pointing to deeper structural changes in how European markets must operate in an increasingly divided society.
The continent's financial centers are witnessing a profound transformation as religious tensions ripple through market fundamentals. In France, where Europe's largest Jewish and Muslim populations intersect, companies are frantically adapting their business models to navigate these uncharted waters. Traditional valuation metrics are proving inadequate as firms face rising security costs, shifting urban demographics, and evolving consumer behaviors driven by religious and cultural dynamics. This new paradigm forces investors to consider whether Europe's markets have entered an era where social cohesion rivals financial metrics in importance.
The emerging religious divisions in Europe represent more than a social challenge – they're reshaping the very foundation of market analysis. As witnessed in recent events across Amsterdam, Paris, and other major cities, what begins as cultural tension quickly translates into market volatility, altered consumer patterns, and revised risk assessments. Forward-thinking investors are now recognizing that success in European markets requires a sophisticated understanding of religious and cultural dynamics, marking a revolutionary shift in investment strategy. The CAC 40's journey through these turbulent waters may well predict how global markets will adapt to a world where religious tensions increasingly influence economic outcomes.
CAC 40 Finds Support at 7,200, Setting the Stage for a UpswingThe French stock market index, CAC 40, has recently shown resilience by finding solid support at the key level of 7,200. Today's trading session has resulted in the formation of a new bullish candle, suggesting a potential shift in market sentiment. This development is particularly noteworthy as it occurs right within a predefined demand area, providing traders with an opportunity to reassess their strategies.
From a technical analysis standpoint, the rebound at this demand zone highlights the strength of buyers stepping in to absorb selling pressure, hinting at a possible reversal in the market's momentum. The precise bounce from 7,200 not only reinforces this level as a point of interest but also indicates that market participants view this region as a favorable entry point.
Moreover, the current bullish seasonality adds another layer of optimism for those considering long positions. Historically, certain times of the year tend to favor upward movements in equities, and the outlook derived from this trend suggests that the CAC 40 could experience additional gains in the coming weeks.
If the index maintains its upward trajectory, it may open doors for significant upward movement, making this an intriguing time for market participants aiming to capitalize on a potential recovery.
Overall, keeping a close eye on market developments and being prepared to act on long opportunities as they arise could lead to fruitful outcomes for those engaging with the CAC 40 in this promising phase.
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L'OREAL weekly (log)Hello everyone,
Weekly chart on logarithmic scale.
The long-term trend is bullish, but the channel is breaking down in the short term.
The price has just gone below the 200-period simple average.
Is L'Oréal "Because you're worth it" still in the air?
This file does not interest me for the moment.
Make your opinion, before placing an order.
► Thank you for boosting, commenting, subscribing!
Will CAC 40 See a Bullish Turn? Key Levels to Watch nextThe CAC 40, the benchmark French index, continues to trade around 7,496 during Friday's London session. Currently, the price is retesting a previous demand area, sparking interest in a potential bullish reversal pattern. I’m closely monitoring lower timeframes and daily charts for confirmation of a possible long position.
Market dynamics show retail traders are predominantly short, while smart money has shifted to long positions, signaling potential upward momentum. Additionally, the forecast indicator suggests a possible bullish seasonality for the index. However, it’s crucial to wait for a confirmed bullish reversal before entering any trades.
Patience remains key, and the next few days will be critical in determining the direction of the CAC 40. Stay tuned for potential entry opportunities as the index tests this significant demand zone.
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Paris Olympics OutcomeHere's a setup of the CAC40, France's top 40 stocks. I believe it is on a bullish ride as well as other indices. It has the best setup in my point of view.
DISCLAIMER NOTICE!
This is only my opinion and not a financial advice to set up a trade or invest. Trading or investing without knowledge is highly risky.
Hermes Intl. Lets Try The Screwdriver NowHermès International S.A. is a French luxury design house established on 15 June 1837. It specializes in leather goods, lifestyle accessories, home furnishings, perfumery, jewelry, watches and ready-to-wear.
Since the 1950s, its logo has been a depiction of a ducal horse-drawn carriage.
Technical graph for Hermes stocks (US Dollars - denominated) indicates they turned to extra hot levels earlier this year, somewhere in mid-February 2024.
Due to common uncertainty the bubble is going to be finally screwed.
CAC40 Enters Seasonal Growth Phase: A Promising Buy OpportunityThe CAC40 index is entering a period where its price historically tends to grow exponentially until the end of August. This seasonal trend presents a significant opportunity for investors. Our analysis has identified a potential Demand area where the price has already shown a rebound, indicating strong support at this level.
This Demand area is particularly compelling as it aligns with the 78% Fibonacci retracement level, a key indicator in technical analysis that often signals strong price reversals. Additionally, we have observed multiple technical indicator divergences in this region, further strengthening the case for a bullish outlook.
Given these favorable conditions, coupled with the historical seasonality trend, we see a strong opportunity for a Buy order. The setup is not only supported by robust technical signals but also by the expected seasonal increase in price. This combination of factors enhances the probability of a successful trade.
Moreover, with a reward potential of 2X, this setup offers an attractive risk-to-reward ratio, making it a compelling buy opportunity for investors. By entering a Buy order at the identified Demand area, traders can position themselves to capitalize on the expected upward movement in the CAC40 index during this period.
In summary, the convergence of the 78% Fibonacci level, technical indicator divergences, and the historical seasonality trend presents a promising opportunity for a Buy order in the CAC40. This well-rounded analysis supports a favorable risk-to-reward ratio, making it a highly attractive investment opportunity as we approach the end of August.
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CAC40 Vulnerable Amidst French TurmoilThesis: A confluence of internal political divisions, social unrest, and external economic pressures creates a compelling shorting opportunity in the CAC40 index.
Key Points:
Domestic Disarray: Recent elections have strengthened the far-right in France, weakening President Macron's centrist hold on power. This political fragmentation leads to policy gridlock and hampers economic stability.
Social Unrest: Macron's economic policies have alienated segments of the population, triggering protests and strikes that disrupt business activity.
Global Headwinds: Rising populism across Europe and the ongoing war in Ukraine create a volatile global economic environment. This uncertainty further strains the French economic outlook through inflationary pressures and supply chain disruptions.
Bearish Outlook for CAC40: The aforementioned factors are likely to negatively impact the performance of companies listed on the CAC40. Investor sentiment is already shifting, as evidenced by recent hedge fund activity in European stocks.
Cac40 France ideaHey Guys,
Yearly is bullish - but only above 7660.
Q Chart is Bearish - Bearish Engulfment.
Monthly as Well. Quarterly Stochastic is turning down.
3 Zones to watch: 8100 7650 7373
Monthly candle is testing Bullish Trendline… Bounce expected to form a lower igh below the Double Bottom. -> Bearish Chartpattern
I will look for an Entry on the Hourly Chart.
Thanks for reading
French stocks subdued ahead of electionsAhead of French elections on Sunday, European markets, led by France, underperform a tech-driven Wall Street. Here, the S&P 500 (+0.65%) has just hit a fresh record high, and was on course to end up for the fourth consecutive week. Month- and quarter-end flows in high-flying tech keeps US equities supported as we head to the second half of the year.
Meanwhile, French stocks remained under pressure ahead of the weekend, with the benchmark CAC testing its lowest levels since January at the time of writing. Investors are not taking any chances heading into the Sunday's snap elections.
But at current levels of around 7460, the index is at a major support. Let's see if dop-buyers re-emerge next week and drive the market higher. However, if the outcome of the elections reveal even more support for the far right wing RN party, then we could see a wobble at the open next week.
By Fawad Razaqzada, market analyst at FOREX.com
Paris Stock Exchange Set to Open Lower Amid Political UncertaintThe Paris Stock Exchange is expected to open lower on Monday following the European elections, which have raised concerns about the political landscape in Europe. The CAC 40 futures dropped 76.5 points to 7925 points at around 8:15 am, indicating a session start in the red. Markets are reacting to the rise of nationalist parties and French President Emmanuel Macron's announcement of the dissolution of the National Assembly and early legislative elections. If the far-right National Rally party wins, Macron could lose domestic control, adding uncertainty to the market. The CAC 40 dropped 2.4% at the open, leading European market losses, while the Frankfurt DAX and pan-European Stoxx 600 also retreated. The euro has dropped to its lowest level in nearly a month due to the political developments.
CAC40 #HVF for a doubleBig Pattern = Big Moves
Long consolidations = Fast Breakouts
The #NIKKEI had a beautiful chart pattern and we are seeing the explosive up moves occur in that market.
The French stock market - along much Europe hasn't done much for over two years
But we are quickly approaching Target 1 of a large --- non conventional HVF
Is it monetary stimulus or economic growth that causes the CAC to double?
Don't know ...
One is more desirable of course.
But the same boys
cheering the US stock market screaming higher after a decade plus of stimulus. zero rates and buybacks, does it matter?
@TheCryptoSniper
French Index to rally 8% in wave iii The CAC40 has begun its up journey in what is being labeled currently as wave iii of WAVE 3.
This particular sub-dividing leg is projected moving towards EUR8100-8150 zone.
The final projected target zone for the bigger wave 3 however comes in at a much higher level of EUR 8750.
FRANCE40 forecastRSI few days ago was record high 82 on daily chart, which means the market heavily overbought. No market is going up constantly. Correction is expected to happen anytime, with two potential targets at 20EMA or 50EMA.
I don't believe the approach of soft landing on recession. In my opinion the recession will come and when it comes, it will hit hard.
It's normal for markets to rally at the end of the year, statistically beginning of January is a little cooling off period.
*This is not a trading advice. Trading is risky. Always do your own analysis before entering the market.*
Has the Twilight Zone with the World Markets ended? -DOWN we go!If you've just been a position (swint trader) with shares this year.
You'll know it's been bvery difficult and challening.
We've seen world markets move in a sideways motion which I like to call the Twilight Zone.
FTSE 100 - UK-
DAX 30 - Germany
CAC 40 - France
ASX 200 - Australia
It breaks down, it goes back up into the range.
It breaks up and it goes back down into the range.
The only semblance of hope right now is that the price has broken BELOW the range and has remained below the 200MA Blue LIne.
This means, the markets are more likely to be and stay in the downtrend for the next couple of weeks and months.
And we might need to look to short (sell) more than we go long and buy.
The overall trend is down right now, but for how long?
We as traders can only react and anticipate based on what we see in front of our eyes.
It's all we can do really with strict money management principles to preserve and protect.