Having suffered a 20 per cent drop between March and May 2012, France's CAC 40 looks attractive and offers a buying opportunity, says Ragu Dharmaratnam of Baselica.
The index has broken above a very strong resistance level at 3300, as well as its falling trend line. Also, its 21-day moving average is above its 55-day average. Go long, targeting 3600, and with a stop below 3275.