Target Thursday: FRA40, Bitcoin & UK100 hit targets!

• FRA40 bulls bag 700 points ahead 2nd round of elections

• Bitcoin bears secure 450,000 points!

• UK100 hits bullish target before UK election results

Political and economic factors have made this an eventful week for global markets.

Elections in France and the United Kingdom remain in focus with anticipation mounting ahead of Friday’s NFP report.

Here's how these discussed instruments performed this week:

 

    1) FRA40 jumps on post-election relief

• Where and when was Target Price (TP) published?

In our week ahead article published on Friday 28th June:

We discussed how a break above “the 200-day SMA, may encourage bulls to challenge 7700 and 7790.”

 

• What happened since TP was published?

On Monday, the FRA40 jumped as investors welcomed the preliminary results of the French parliamentary elections.

While Marine Le Pen’s National Rally Party won the first round, it was by a smaller margin than what some polls had suggested. The index received another boost mid-week after more than 200 centrist and left-wing candidates pulled out on Tuesday evening in a united front against the Far Right.

The key question is whether Marine Le Pen’s National Rally will secure enough seats needed for an absolute majority in the French National Assembly or whether there is a hung parliament outcome.

Note: More volatility could be on the horizon for the FRA40 due to the second round of French elections on Sunday 7th July.

 

• How much in potential profits

700 points for traders who entered above the 200-day SMA and exited at the 7700 level.

Before

After 

 

    2) Bitcoin tumbles below key support

• Where and when was Target Price (TP) published?

Bitcoin caught our attention earlier in the week after struggling to push above a daily resistance level.

We suggested how “sustained weakness below $63500 may encourage a decline back towards $59000.”

 

• What happened since TP was published?

Bitcoin has tumbled roughly 10% since Tuesday thanks to US political drama and developments revolving around the failed Mt. Gox exchange.

Investors across the globe are jittery over President Joe Biden dropping out of the election bid, with his replacement complicating things for Republican Trump who is a supporter of crypto. Fears around a major liquidation event in Bitcoin as Mt Gox starts paying back users also kept bears in the game.

Note: Bitcoin could see more wild swings this week thanks to the incoming US jobs report on Friday.

 

• How much in potential profits

Traders who sold Bitcoin prices at $63500 and exited at $59000 would have been rewarded with 450,000 points!

Before

After

 

    3) UK100 hits target before general election result!

• Where and when was Target Price (TP) published?

In our market preview of the UK general election, we suggested that “should 8100 prove to be reliable support, prices may rebound toward 8250.”

 

• What happened since TP was published?

The bullish momentum from US markets on Wednesday rolled into Asia and Europe this morning with the overall positive mood supporting the UK100.

Note: The UK100 could be injected with fresh volatility on Friday depending on the UK election results.

 

• How much in potential profits

1150 points for traders who jumped in after Monday’s close and took profit at 8250.

Before

After

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