We should go long before the end of July / beginning of August!

26 July 2022 539
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The second half of July is in full swing, as well as French stock index, the index is increasing, proving the benefit of half-month effect. CAC40 counterparts of the effect, which are Japan and German stock indices are also growing and showing the growth of quotes after the 15th of the month. 


Today in addition to the half-month effect the turn-of-the-month effect comes into its own, predicting a continuation of CAC40 growth. The best entry time for CAC40 is the opening of a long position 6 days before the end of the month (today) and the close of the deal at the end of trading on the 5th day from the beginning of next month.


Since the beginning of March the index has been traded in the range 5850 - 6600, changing and returning its boundaries. Today the index is in its middle, it’s around 6250.

The potential growth to the level of 6600 is still possible, thus, these long positions can be considered.


What options of trading are possible in expectation of continuing CAC40 growth in the second half of July together with the turn-of-the-month effect?


1. Buying CAC40 from the market at the current price.

Target orders Take Profit 1 and Take Profit 2 may be levels 6450 and 6600 relatively. 

Stop Loss is below 6100.

You may also exit the market at the close of trading on July 29 or August 5.


2. Buying in case of rollback to 6100.

Then target orders Take Profit 1, Take Profit 2 and Take Profit 3 may be levels 6300, 6450 and 6600 relatively. 

In this case Stop Loss is below 6000.

You may also exit the market at the close of trading on July 29 or August 5.


Remember the spread and money management rules!


Risk disclosure!


Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.

This content is for informational purposes only and is not intended to be investing advice.

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