Trade of the week: long CAC 40
The French CAC 40 stock index is expected to stay highly volatile ahead of Sunday’s second round of legislative elections.
However, for technical reasons we would like to go long the index, with a stop loss below last week’s low at 7,450, and an upside target at 7,850.
(AI Video Summary)
Previous corn futures and EUR/USD trading outcomes
This week's "Trade of the week" discusses successful stock movements and new trading strategies. The previously advised short position on corn futures executed at 452, achieved substantial profits with a sharp decline to 407.
Meanwhile, the long position on EUR/USD, initiated at 1.0715, resisted volatility and aims for a target of 1.09.
This week's CAC 40 trading opportunity
This week's trading recommendation involves going long the CAC 40 index amidst the French presidential election's first-round outcome. Entry is suggested around the current level, utilising a tight stop loss below last week’s low at 7,450 and an upside target of 7,850, capitalising on election-driven market movements and a potential double bottom pattern.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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