Trade Of The Week: Long CAC 40

(MENAFN- DailyFX (IG)) This week’s trading opportunity

This week’s “Trade of the week” is to go long the French CAC 40 stock index. Now, it’s a risky trade because, obviously with everything that’s going on to do with the war in Iran, anything could happen.

But from a technical perspective, the fact that we haven’t taken out the current March lows, despite the oil price being back above the $100 mark, basically, could indicate that we are stabilising. And if you look at the daily chart in the video at 0:36, you can see here that over the last 4 or 5 days, the CAC 40 has been sort of drifting lower, but it hasn’t taken out the low from the 9th of March, which is a low from Monday of last week.

So that gives me some sort of hope that perhaps we might get a move to take us back above the psychologically 8000 mark here. And in that case, we could rise back towards the area seen here around 8200, 8300. So we’ll see. But it’s a risky trade, as I say. And if we were to take it, we would go long the CAC 40 at around 7880, with a stop-loss below the low seen on the 9th March at 7743, and an upside target at around 8200.

Previous week’s trading outcome

Let’s also look quickly at last week’s “Trade of the week”, which was to go long Bitcoin. And you can see the horizontal line on the chart at 1:36 in the video, is where we went long at. So that trade worked out really well. We’ve been in positive territory ever since.

Now, some of you may be tempted to cash in your profits because we are testing previous resistance, and that’s a totally valid reason to do so. But others might believe that we are trying to break through this previous high and out of this sideways trading range, in which case we could head up towards my upside target around $88,000 in the medium term. So that is still on the cards.

If you still have your stop-loss below the low seen on the 6th of February, maybe you can raise it to at least the low of last Sunday, the 8th of March. Or even better, to your break even level, to your entry level, and thereby you have a free trade on. But that one has worked out really well on Bitcoin.

This week’s trade in summary

So coming back to this week’s “Trade of the week”, it is to go long the French CAC 40 at around 7880 with a stop-loss below the current March low at 7743, and an upside target around 8200.

Important to know

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

MENAFN16032026000076011015ID1110868461