The Parisian index shot higher in the early part of the session, only to give it back quickly.
CAC
The Parisian CAC initially tried to rally during the trading session on Thursday to show signs of exhaustion just below the 8500 euros level. This is an area that's been pretty significant resistance for some time, and I also think that if we pull back from here, there are plenty of buyers who are more likely than not going to get involved based on support.
Ultimately, this is a market that is moving right along with geopolitics and risk appetite, and really, I think at this point, the market will be focusing on luxury and consumer discretionary brands such as LVMH, which, of course, is a huge anchor to the index's momentum. This is right along with other peers like L'Oreal.
The sector of luxury in the Parisian index typically acts as a high beta vehicle for global wealth and Chinese and American consumer demand. This is a basic look at how the wealthy may spend.
Top Regulated Brokers
Sector Dynamics and Key Technical Levels
Beyond that, we also have Schneider Electric and Airbus, which have been movers during the day, and then eventually BNP Paribas, Credit Agricole, and Société Générale, which help in the banking sector.
Currently, it looks like the 8000 level is your floor, with the 8300-euro level being a shorter-term floor. Ultimately, I think we see a lot of resistance above, but if we can break above the 8500-euro level on a daily close, then it's likely that we will continue to go much higher, perhaps even taking a measured move all the way to the 9000-euro level.
I have no interest in shorting the CAC, and I believe that pullbacks are to be bought into.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.