(Partial video transcript)
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.