Second half of April: time of long positions for the French stock index

The second half of April has begun, and it means that there is a potential opportunity to work with the German stock market index DAX 30, French index CAC 40, and Japanese index Nikkei 225, which had proved its worth specifically in the second part of a month. 

Let’s look at the French stock market index as the instrument with the biggest average yield of deals which is based on the studied half-month effect. 

Since the beginning of the military operation in the east of Europe CAC 40 index had lost more than 12 percent for one and a half weeks but it had restored the positions within three next weeks.

Currently, the index is traded within a narrow price range of 6490 - 6570, as it was during the seven previous trading days. The uptrend of March remains despite the slowing growth rate. 

In the conditions of a preserving high level of geopolitical tensions, economic uncertainty, and increasing suctions pressure, which will continue at least till the end of May, when according to the director of the Energy development fund, the real restrictive measures can be taken in the absence of payment for gas, probably CAC 40 will continue the flat movement with the possible extension of the range’s boundaries to the correctional levels of Fibonacci 0% - 38.2%, which correspond to the price levels of 6830 and of 6400.

Which options to enter the market are possible?  

1. Buy the index from the market at the current price. The points 6660 and 6830 can be the corresponding target orders. You can limit the losses by the Stop Loss order below the point of 6400. Also, close the position at the end of trading on April 30. 

2. Buy the index when the cost decreases to the point 6490. Then, the points 6570, 6660, and 6830 can be the corresponding target orders Take Profit 1, Take Profit 2 and Take Profit 3. Limit the losses by the Stop Loss order below the point of 6400. Also, close the position at the end of trading on April 30. 

3. Buy the index when the cost decreases to the point of 6420 with the target levels Take Profit 1, Take Profit 2 and Take Profit 3 on the corresponding points 6570, 6660 и 6830.  Limit the losses by the Stop Loss order below the point of 6285. Also, close the position at the end of trading on April 30. 

Warning! 

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.