Fxwirepro call review: maintain short positions in ftse100; interim targets added
Source: FxWire Pro - Commentary / 23 Mar 2018 07:28:21 Eastern Standard Time
Back in February this year, in an article named, “FxWirePro: Prepare to sell FTSE100 on correction”, available at https://www.econotimes.com/FxWirePro-Prepare-to-sell-FTSE100-on-correction-1158628 we suggested, “Based on our calculations models, we at FxWirePro believe that the global stock markets selloff that rattled investors’ nerves for two weeks might not be over, at least for the European stock markets. While the U.S. stock markets can enjoy the support of recently passed tax cuts and reforms, the European bourses lack such.” We also highlighted our bearish calls on several European indices, namely Eurostoxx50, DAX, IBEX35, and CAC40 and we urged our readers,
“Sell FTSE100/UK100 at the current price of 7240 (UK100) and at rallies of every 100 points, targeting 5900 area with the stop loss around 7800.”
Since then, despite an agreement between the European Union and the United Kingdom, FTSE100/UK100 declined as trade tensions rise. President Trump in early March announced 25 percent tariffs on all Steel imports and 10 percent tariffs on Aluminum imports. This week, Trump announced a trade action under section 301 which targets Chinese goods worth $60 billion which will become live after a 30-day period.
As global stocks selloff fathers pace, UK100 (CFD of FTSE100) declined further and currently trading at 6910 area. We would like to urge our readers to maintain short positions and in this article, we would like to add the following interim targets.
Target 1 - 6700
Target 2 - 6570
The closeness of these two above targets suggests a bounce back from the area is likely before selloff resumes.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.