FxWirePro Call Review: Eurostoxx50 target lowered from 3250 to 3100

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.

While initially there was a setback, as the index rose to as high as 3689, however, the recent selloff in the global stock market has pushed our call well in the money. The index is currently trading at 3380, and we expect the index to not only reach our initially stipulated target at 3250 but beyond; towards 3100. However, we would recommend profit bookings to the tune of 25 percent around 3250 area.