FRA40 index rose 1.0% during today's session, outperforming its regional peers and approaching all-time high established in January of 2022, boosted by slew of upbeat corporate earnings. Orange (ORA.FR) stock surged 5.7% after the company presented its new “ Lead the future ” strategic plan, which aims "to promote recognized excellence in its core business and to grow sustainably in Europe, Africa and the Middle East ”. Pernod Ricard (RI.FR) stock trades nearly 4.0% higher, after the spirits company posted better than expected revenue figures in the first half mainly thanks to price increases. Meanwhile, Airbus (AIR.FR) shares advanced more than 3%, after the company announced plans to deliver 720 aircraft this year compared to 611 in 2022.
From a technical point of view, the French index rose over 30.0% from September lows and is currently testing record high at 7400 pts, however hidden bearish divergence appeared on the Momentum indicator, which indicates that the recent upward rally may be losing steam. If sellers manage to regain control, downward impulse may be launched towards support at 6515 pts which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020.
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FRA40, W1 interval. Source: xStation5