Fxwirepro call review: add additional short positions in eurostoxx50
Source: FxWire Pro - Commentary / 23 May 2018 07:03:16 America/New_York
Back in November 2017, in an article named, “FxWirePro: Sell Eurostoxx50 targeting 3250”, available at http://www.fxwirepro.com/fxwire/popup/newsPopup?id=777979 , we urged our readers to go short in the European blue-chip index Eurostoxx50 at the then current rate of 3582 with a target around 3250 area. Despite the bigger trend remaining buy, our calculations suggested that the index is ripe for a correction. We suggested stop loss at 3720 area.
We reiterated our support for the call in an article in January, https://www.econotimes.com/FxWirePro-Call-Review-Eurostoxx50-still-looks-wobbly-despite-global-equity-rally-1098408 . We preferred the Eurostoxx50 as it is supported by economic recovery and already priced in stimulus from the European Central Bank (ECB), instead of the tax reforms and cuts supporting the U.S. benchmark indices.
In two follow up call reviews, available here, https://www.econotimes.com/FxWirePro-Call-Review-Eurostoxx50-target-lowered-from-3250-to-3100-1134308 and here, https://www.econotimes.com/FxWirePro-Call-Review-Eurostoxx50-short-target-revised-from-3100-to-2800-1146997 we revised our target for the index to 3100 and then to 2800.
Since our last review, the European blue-chip index has recovered around 3260 area. After reaching our short entry point around 3580, it has come under selling pressure. At this point, we would like to urge our readers to add short positions in Eurostoxx50 at the current rate of 3540. The stop loss and the target is as stated in previous reviews.© 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.