FxWirePro Call review: Maintain short positions in Eurostoxx50; final target further extended

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.

As the index recovered since March, we called on our readers to enter additional short positions in the index at the then current rate of 3540. The index is currently trading at 3210 area.

In this review, we would like to extend our final target from 2800 area to 2550 area and would urge readers to maintain short positions.