The index remains in a sideways channel amid France’s ongoing political crisis. Following the vote of no confidence in Prime Minister François Bayrou, large-scale protests erupted over the proposed 2026 budget. The draft plan raises spending to €43.8 billion from the previously targeted €40.0 billion. Savings would be achieved by limiting pension indexation, reducing social transfers, and cutting ministerial budgets, while €3.5 billion in additional defense spending and the elimination of certain public holidays are included. Despite the government’s resignation, President Emmanuel Macron continues to support the proposal, keeping the draft intact for now.

The bond market has reacted with a pullback from recent highs, showing a corrective move lower in yields. The 10-year government bond yield dropped to 3.456% from last week’s 3.578%, the 20-year yield fell to 4.031% from 4.221%, and the 30-year eased to 4.326% from 4.493%.

Top Gainers: Thales Group SA (+3.02%), Societe Generale SA (+2.76%), Legrand SA (+2.69%).

Top Losers: Publicis Groupe (–2.65%), Edenred SA (–2.50%), Pernod Ricard SA (–2.50%), Teleperformance SE (–2.44%).

CAC 40

Support and Resistance Levels

On the daily chart, the index continues its local correction, pulling back from the resistance line of a recently formed sideways channel with dynamic boundaries of 8000.0–7500.0.

Technical indicators are weakening the recently formed sell signal: fast EMAs on the Alligator indicator are narrowing, while the AO histogram remains below the zero line, forming corrective bars.

  • Support: 7670.0, 7470.0

  • Resistance: 7835.0, 8000.0

Trading Scenarios

  • Sell Stop: Positions may be opened after a breakdown below 7670.0 with a target of 7470.0. Stop-loss at 7750.0. Implementation horizon: 7+ days.

  • Buy Stop (Alternative): Positions may be opened after a breakout above 7835.0 with a target of 8000.0. Stop-loss at 7750.0.

Scenario (Weekly)

  • Recommendation: SELL STOP

  • Entry Point: 7670.0

  • Take Profit: 7470.0

  • Stop Loss: 7750.0

  • Key Levels: 7470.0, 7670.0, 7835.0, 8000.0

Alternative Scenario

  • Recommendation: BUY STOP

  • Entry Point: 7835.0

  • Take Profit: 8000.0

  • Stop Loss: 7750.0

  • Key Levels: 7470.0, 7670.0, 7835.0, 8000.0