Despite publications below the consensus of all the GAFAMs, the major global indices ended the week on the rise. This movement can be explained in particular by the fact that other stocks are supporting the markets with good publications, especially those related to commodities. The deep sector rotation that we have been sensing for some time is materializing in favor of cyclical stocks. Thus, Airbus, Michelin or Safran are at the top of the Parisian charts. Inflation figures in the United States, which came out in line with the consensus, indicate that a peak has probably been reached. This figure comes confirm what operators have been anticipating for the past few sessions, namely an easing of the monetary policy tightening trajectory of central banks, as the Fed meets next week.
On the future November
The resistors are : area 6293/6315 and 6355.5 then 6388.5 or even 6449 and 6480.5.
The brackets are : 6220 then 6195.5 and 6140 or even 6102.5 The area 5975.5/6056.5. Then 5832.5 or even 5739.5 and 5677.5.
Intraday, the trend is bullish beyond 6195.5.
Graphically, the Future CAC40 (see chart attached in 14 Hours), continues the break in its upward progression, confirming the signs of strength. It thus closes the week beyond 6220 and approaches the major resistance zone at 6293/6315. We recall that the ideal objective of the bullish impulse is around 6480.5.
For now, the index continues to oscillate within the trading range identified since October 27, whose limits are 6195.5 and 6293. The overflow of 6293 and especially 6315 would make it possible to target 6388.5.
Conversely, the breakout of 6200 would give a first intraday alert, validated under 6195.5. We would then target the 6102.5/6140 area. Acceptable level of consolidation, ahead of the FED’s decision on Wednesday evening and in the absence of strong support on the derivatives markets.
The short-term alert remains positioned at 6056.5 and the medium-term alert is still between 5677.5 and 5739.
BFM on 28/10 at 3:30 p.m.: Full update