FxWirePro Call Review: Energized bulls threaten our short call in FTSE100 targeting retest of peak

With risk aversion fading from the global markets after the western alliance’s (UK, France, and the U.S.) strike in Syria in response to the alleged chemical attack turned out to be more limited than originally anticipated and as China signaled cooperation in its trade dispute with the United States, equity bulls have energized across the globe and it is threatening our short call in FTSE100 (UK100 – CFD of FTSE100).

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, to

“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.”

After which, the index declined further and in a follow-up article, we added two interim targets at 6700 and 6570 area.

However, after bottoming around 6850 area (UK100) in mid-March, the index has bounced back and is currently trading at 7320 area. Calculations suggest that the energized bulls are targeting a retest of the last peak around 7800 area. But we expect sellers to emerge around 7570 area and we would prefer to maintain our bearish outlook at this point.