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FxWirePro: Prepare to sell FTSE100 on correction

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 have been short on Eurostoxx50 before the selloff even took place, http://www.fxwirepro.com/fxwire/popup/newsPopup?id=777979 and recently we revised our target for the Eurostoxx50 lower from 3100 to 2800, https://www.econotimes.com/FxWirePro-Call-Review-Eurostoxx50-short-target-revised-from-3100-to-2800-1146997

We have also revised our outlook for the German benchmark stock index DAX (GER30 in case of CFD), https://www.econotimes.com/FxWirePro-Call-Review-DAX-outlook-revised-from-bullish-to-bearish-1147363

We have also called on our readers to go short in the French benchmark stock index, CAC40, here, https://www.econotimes.com/FxWirePro-CAC40-trapped-in-Bull-Bear-fight-Sell-targeting-another-10-percent-drop-1152851

We have also gone short on the Spanish benchmark IBEX35, here https://www.econotimes.com/FxWirePro-Sell-IBEX35-targeting-7800-area-1158558

When it comes to the United Kingdom, despite a relatively strong economy there are tons of issues that the country is facing right now. The biggest of them is definitely Brexit; now add domestic political trouble to that (There have been several attempts since the UK election last year to oust Prime Minister Theresa May). Just not that, add the issue of Irish border into the mix and President Trump’s save American manufacturing agenda, which may not hurt the UK directly but the ripple effects will.

Trade idea:

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.

 

 

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