Recent macroeconomic statistics showed French CPI rising by 0.2% in July, after 0.4% in June, while the annual rate stood at 1.0%. The main drivers were transport services (+10.2%) and accommodation services (+11.7%). Energy prices accelerated to 0.9% from 0.7%. Declines were recorded in industrial goods (–2.4%) and food prices (–0.1%).
Bond market activity is adding pressure on equities: yields on 10-year French government bonds rose to 3.467% from 3.448% last week, 20-year yields climbed to 4.051% from 4.019%, and 30-year yields reached 4.330% from 4.293%, signaling a new upward trend.
Top gainers in the CAC 40 include Teleperformance SE (+4.02%), Pernod Ricard SA (+1.74%), and TotalEnergies SE (+1.71%). Leading decliners are Publicis Groupe (–0.95%), Thales SA (–0.88%), Hermes International SCA (–0.67%), and Schneider Electric SE (–0.63%).
Support and Resistance Levels
On the daily chart, the index continues a local correction, moving toward the upper boundary of a recently formed sideways channel with dynamic limits between 7980.0–7550.0.
Technical indicators maintain a buy signal: fast EMAs of the Alligator indicator are expanding, while the AO histogram, remaining above the zero line, forms corrective bars.
Resistance levels: 8020.0, 8260.0.
Support levels: 7840.0, 7560.0.
Trading Scenarios
Long positions are preferable after a breakout above 8020.0, targeting 8260.0, with a stop-loss at 7950.0. Implementation horizon: 7 days or more.
Short positions become relevant after a breakdown below 7840.0, with a target of 7560.0, and stop-loss at 8000.0.
Scenario
- Timeframe: Weekly
- Recommendation: BUY STOP
- Entry Point: 8020.0
- Take Profit: 8260.0
- Stop Loss: 7950.0
- Key Levels: 7560.0, 7840.0, 8020.0, 8260.0
Alternative Scenario
- Recommendation: SELL STOP
- Entry Point: 7840.0
- Take Profit: 7560.0
- Stop Loss: 8000.0
- Key Levels: 7560.0, 7840.0, 8020.0, 8260.0