CAC40 : Significant Long Term Break Out

The French Index celebrated Macron Victory in first round of election with a quite significant breakout as shown in chart below. The red downtrend line that connects major tops in 2000, 2007 and 2015 has been broken the day after the election first round : This is a significant move and will remain so as long as market does not retrace this positive move in the short run which i do  not believe will happen at this stage.

One can put in place a tactical trade set up with limited risk here : Buy the french market – ETF, individual stocks, certificates, .. – and place SL below the former resistance which lies around 5150. Risk of around 3%.

ACTION TACTICAL PORTFOLIO :  Buy CITI Turbo Call Knock Out 4151  Certificate  / Leverage at current price of 11,53 EUR is 4,59  (1% investment gives you a 4,59 exposure to CAC40 )- ISIN DE000CX7L4F3 . Action taken : Buy 0,50 unit at current price of 11,52 EUR -CAC40 base level 5275- / Buy another 0,5 unit in case of market short term consolidation around 5180 -5200 – Limit at 10,75 EUR valid end of week.