FxWirePro Call Review: Eurostoxx50 still looks wobbly despite global equity rally

Back in November last year, 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.

Since that call, the Eurostoxx50 has moved higher and currently trading at 3630. However, it is important to note, while the U.S. benchmark stock index has returned 8 percent since our call, the European blue-chip has returned just 1.3 percent. In short, the blue-chip index still looks wobbly and we would like to urge our readers to maintain short positions. The recent focus of the market on central banks’ policy winding is likely to support our outlook. However, as the global stock market rally is continuing, we would like to revise the stop loss from 3720 to 3760.