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CAC 40: The crash continues

UNITED STATES (OBSERVATORY NEWS) — The CAC 40 closed sharply lower yesterday, falling -3.32% in the face of panic linked to the coronavirus, and knows no respite this Friday, the index having opened in sharp fall, falling by 3.36% to 5311 points at the time of writing this article.

In the end, the CAC 40 now shows a fall of around 12% since last Friday’s closing price at 6029 points, which puts the Parisian index on track to post its worst week of fall since April 2008.

The news worrying reports and data regarding the coronavirus are legion, but among the most important, it should be noted that the number of cases now exceeds 2000 in South Korea, while Moody’s estimated that the chances of seeing the current health crisis are transform into a global pandemic are now 40%.

From a graphical point of view, it will be noted that the CAC 40 broke below its 200 day moving average and below the psychological threshold of 5500 points yesterday, two bearish signals which follow the breakouts below 6000 points and below the 100 day moving average. earlier this week.

This morning, the trough of October 3 at 5393 points was broken, which further reinforces the negative bias.

The next potential target at this stage will be hollow from June 3, 2019 at 5152 points, before the major psychological threshold of 5000 points.

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