FRA40 trade ideas
FRANCE CAC40 Retest The Previous Toplooking for cac40 index to retest pre covid-19 levels before going into new bear market.
France40. Short We look to sell at 5720 the Previous resistance .
The rally is close to an exhausting count in the intraday chart. The expectation is for this swing higher to continue towards the top of the trend channel .To complete correction before sellers return.
Entry 5720
TARGET 5500
SL 5805
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Support: 5600
Resistance: 5720
CAC40. Shortprice chart with gaps almost every day is typical for very thinly-traded securities and should be avoided. Prices often gap up or down at market open, but the gap does not last until the market closes. Such temporary intraday gaps should not be considered as having any more significance than normal market volatility.
Tp 5620
Sl 5730
CAC 40 – Index futures near support The index has been in a strong uptrend since past few months however it has experienced some correction since early January, currently it stands at the support of the horizontal support line suggesting buying could be experienced near current levels. On 21st December the index had made a very significant “hammer” formation just below current levels. It would be prudent to say that the CAC-40 could rebound towards 5520 and 5600 if it sustains above 5350.
Risk Disclaimer:
Trading Forex or any CFD products may not be suitable to all investors and they must evaluate their risk appetite. The above article should not be construed as a trading or investment advice as it is solely for education and information purpose only. Trading might incur a loss of capital and hence investors might be required to gain further knowledge regarding the risks involved. Leverage should be used wisely.
3 Level Drop w/ stop huntOk, here we see 3 levels of drop with a stop hunt, we see a connecting parallel with one of the gann fan lines, marking a possible reversal, my recommendation here is to go long with the a stop below the previous low, please note: do expect a double bottom, it may pay off to wait and see if it does print and enter when the double bottom high is broken, ie making new highs, targets a marked as per TP1 & TP2 in consolidation areas or 'fair price' zones.
GL
France 40 Uptrending Buy OrderFRA40 Long Position
Entry: €5,644.6
TP & RR: €5,688.0
Stop Loss: €5,627.3
REASONS FOR THE TRADE
Breaking up from a descending triangle, I expect the price to retrace slightly and then continue the up move. Stop Loss is set below the trendline and the target is at a resistance level. Market Flow indicator show a clear move up.
The trade is slightly in retrospect as by the time I write the trade idea price started moving up. However, I think you may have a chance to enter again.
France 40 Triangle - Short PositionFrance 40 - Short Order
Entry: €5,659.6
TP & RR: €5,569.7 (1.7)
Stop Loss: €5,710.8
REASONS FOR THE TRADE
Typically this isn't a trade I would take as the RR is less than 2 and I consider those unfavorable. However, the price may form a lower high and I want to take advantage of the action if that is the case. The SL is placed just above the previous high. If that level gets hit, it would be a clear invalidation of the downtrend idea.
France 40 Ascending Channel - Long PositionFrance 40 Ascending Channel - Long Order
Entry: €5,668.1
TP & RR: €5,760.5 (1.89)
Stop Loss: €5,619.3
REASONS FOR THE TRADE
Again, this is a trade that I would like to take, but will not due to already having enough positions. However, I am sharing this idea for those of you looking for a trade setup, especially if you are trading FR40.
This is a similar ascending channel to a recent trade idea I posted on Oil (from yesterday). I am expecting the price to slide up and then do a move up, at least forming a double top and possibly reaching the upper trendline.
Further, I am seeing a crossover on the Market Flow indicator, so I believe the bulls have enough strength to push the price up.
The Stop Loss is set just below the recent low. Generally speaking, if it breaks down from the lower trendline then I would be looking to close the trade since that invalidates the initial setup.
CAC40 soon time to get out ?The market is up 24% since the beginning of the month without a consolidation, can we keep going up to reach the hights of 2019 before the COVID19 crisis ? do we need a pause to find new buying levels around daily supports 5463-5343 or 5175-5211, do we need to close gaps 5000-5022 or 4730-4705 ?
Can the hope of recovery from the Pfizer annoncement on 9/11 be erased by the consequences of multiple shutdowns and the risk (this is more than a risk but a highprobality) to see many small business close for ever and trigger the fast rise of unemployement in 2021, bringing us to new lows on the stock exchange ?
CAC40 recovery to pre-Covid level displays a short signalEarly 2021 will be looking for a bearish scenario through a 'W' pattern from current valuation.
CAC40 expecting to retrace down to 5150-5300 for Q1-2020 with a sytong resistance at 5185.
Bullish scenario limited to a maximal scored at 5750-5785 given macro perspective and moribund monetary plans amongst EU members as of 31/12/2020.
MACD+ showing a bearish trend since local ATH .
4H Bollinger widens, expecting volatility to increase first days of 2021.
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Short CAC40 for Q1-2020
. Buy BX4 (leverage CAC40 short x2) @2.05 - 2.25€
. TP @2.40-2.60€
. SL starting below 2.00€ corresponding to CAC40 above 5750pts
