FxWirePro: Break below 7350 could see larger correction In FTSE100; partial profit bookings recommended

In April last year, we at FxWirePro suggested to our readers that the UK’s benchmark stock index, FTSE100 which was then trading at 6320 that it might be aiming for 7000 mark in an article named, “FxWirePro: FTSE may be aiming for 7000 mark”  available at http://www.econotimes.com/ . We then reinforced our outlook in September last year in a subsequent article named, “FxWirePro Medium Term Outlook: Buy FTSE at dips targeting 8100”, available at http://www.econotimes.com/ , where we called on our readers to long the FTSE100 at the then current rate of 6680 and at dips around 6500 with a target around 8100 area. We discussed interim targets of 7100, 7300, 7500, 7750 in those articles.

UK’s benchmark stock index FTSE 100 has reached several of those targets, namely, 7000, 7100, 7300 and 7500. We would like to recommend partial profit bookings as the current political uncertainties in the UK might lead to a large correction in FTSE 100, despite it is getting the support of a weaker Sterling.

FTSE 100 is currently trading at 7410 and we suspect that if it breaks below the key support around 7350 area, it might go for a larger correction to test 7100 area. FTSE 100 is currently trading at 7405.