FxWirePro call review: FTSE100 reaches target at 7500; next target 8100

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.

Now, looking back at our call (which we hope our readers have executed), it seemed quite a successful one. FTSE is currently trading at 7517. So, our readers who have taken the call on advice should be well in the money. Since its suggestion in April last year, the call has returned about 19 percent and from the September rate, it has returned about 12.5 percent.

Despite the upcoming tough Brexit negotiations and the General election in June, we don’t see the need to scrap the call as we suspect the UK government would take up tit for tat policy if Brussels push too hard. Depending on the nature of the talks, big tax cuts by the UK government are on the table. In addition to that, we believe that the weaker sterling, which has declined from 1.5 per dollar to the current rate of 1.292 against the dollar since Brexit referendum would continue to provide necessary support to the FTSE100. We have forecasted a much weaker sterling.

However, anyone looking to avoid unnecessary volatility might choose to cover some of the positions as three of our targets at 7100, 7300, and 7500 have reached. Next targets are 7700 and finally 8100. Key support lies around 7100.