CAC 40: The index breaks above 5300 points before the ECB, Renault plunges

Investing.com – The CAC 40 managed to confirm a break above the threshold level of 5300 points on Thursday, after having tested this level without success yesterday.

The index takes advantage of the effect of the positive climate on the US stock exchanges yesterday, with the S&P 500, which closed up 0.82%.

The CAC 40 is now a 4th session in a row of gains, with an increase of +0.68% at the time of the writing of this article.

In the news of the day, it should be noted that the growth of the Euro Area was confirmed at +0.4% for the 1st quarter of 2019, which is not really an argument uptrend.

Later today, it is the ECB which will depend on the fate of european stock exchanges. Of about dovish tone from the central bank could support the scholarships in ensuring the maintenance of a cost of the financing low for businesses, but the ECB could also trigger a wave of risk aversion, if it proves to be too pessimistic about the economic outlook…

The largest decrease in the CAC 40 is displayed by Renault (PA:RENA), with a dip of more than 7% after Fiat has announced the termination of its proposed merger with the French car manufacturer, ascribing this failure to the requirements of the French government, a shareholder of Renault.

Orange shows a loss of 2%, followed by Carrefour (PA:CARR) to -1.6%.

Has the rise, LVMH (PA:LVMH), stands at +2.02%, not far ahead of Peugeot (PA:PEUP), to +1.99%, and Kering (PA:PRTP) to +1.97%.

From a technical point of view, it should be noted that the increase in the day resulted in a break above the resistance of 5300 points, but also above the moving average 200 hours, which is a new signal rise after crossing above the moving average 100 hours of Tuesday.

If the increase continues, 5350 points will be the next potential goal, before the psychological level of 5400 points.

For the reduction, a return to below 5300 points would put into question the positive profile of the CAC 40 since the beginning of the week, with the possibility of a decline in 5250-60 points in a first time, prior to 5200 points and 5150 points, the low of last week.

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