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FxWirePro Call Review: Add fresh short positions in SGX FTSE China A50 index targeting 9500

In May this year we called on our readers to go short in Chinese shares; to be specific SGX China A50 future, which is a future contract on largest 50 A share companies by full market capitalization of the securities listed in Shanghai and Shenzhen stock exchanges. A CFD (Contract for difference) instrument is also available on SGX A50 future; that is CHN50 offered by FXCM. Here is the link, https://www.econotimes.com/FxWirePro-Sell-SGX-FTSE-China-A50-Future-targeting-15-percent-decline-1298413

The index (CHN50) has been declining after topping around 14900 area in January this year and in May we urged readers to go short on the index at the then current rate of 12550 area suggesting further decline citing trade tensions between the U.S. and China and higher interest rates in the United States. The index declined to 10800 area (very close to our final 10,500 area as the target) before a bounce back. We have urged our readers to maintain short positions as we extended our target to 9500 area.

In this review, we would like to suggest our readers enter additional fresh short positions as the latest calculations suggest that the time is ripe to enter fresh shorts.

Trade idea:

Enter additional fresh short positions at the current rate of 11140 (CHN50) with the first target around 10400 and the second target around 9500 area with a stop loss of 11700 area.

 

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