Current dynamics

Negative corporate earnings from leading French companies pushed down the CAC 40 stock index, which is holding at around 7246.0, after confirmation that business activity in the eurozone has started to decline again: the index in the manufacturing sector fell to 45.2 points in November from 46.0 points, and in France to 43.1 points from 44.5 points, reaching a minimum since December 2023.

As for the domestic bond market, while the trend has already been set in global securities, short-term ones have not yet been able to develop confident dynamics. In particular, the auctions held the day before reflected an increase in yield on three- and six-month bills to 2.866% and 2.661%, respectively, and the rate on annual securities fell to 2.342% from 2.382%. In turn, the yield on 10-year bonds fell to 2.915% from 2.965%, on 20-year bonds to 3.229% from 3.305%, on 30-year bonds to 3.452% from 3.514%.

The growth leaders in the index are Hermes International SCA ( 4.75%), LVMH Moet Hennessy Louis Vuitton SE ( 2.30%), and Airbus Group SE ( 2.01%).

Among the leaders of the decline were Stellantis NV (–6.38%), Carrefour SA (–4.79%), Unibail-Rodamco-Westfield SE (–2.91%), and Societe Generale SA (–2.63%).

Support and resistance levels

On the daily chart, quotes continue to correct, approaching the resistance line of the descending channel with dynamic boundaries of 7550.0–6700.0.

Technical indicators are once again reinforcing the sell signal: fast EMAs on the Alligator indicator remain below the signal line, expanding the range of fluctuations, and the AO histogram, being far from the transition level, continues to form correction bars.

Support levels: 7150.0, 6800.0.

Resistance levels: 7340.0, 7650.0.

Trading scenarios

In case of a reversal and continuation of the decline, as well as consolidation of the price below the support level of 7150.0, positions for sale with a target of 6800.0 will be relevant. Stop loss - 7260.0. Implementation period: 7 days or more.

In case of a reversal and continued growth, as well as consolidation of the price above the resistance level of 7340.0, buy positions with a target of 7650.0 and a stop loss of 7220.0 will be relevant.