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FxWirePro: Sell Eurostoxx50 for short term target of 2630 area

Over the past three months or so, the European blue-chip index Eurostoxx50 has declined around 8.5 percent and it is down more than 13 percent so far in 2018. The index has been declining since last year, we have called on our readers to go short on the index at the then current rate of 3582, with several targets; 3250, 3100, 2800, and 2550.

Our outlook remains bearish for the European stocks, largely due to weaker recovery despite record easing by the European Central Bank (ECB), internal political troubles (Italy vs. EU over budget, yellow vest protests in France, weaker performance by Germany’s Angela Merkel’s party) amid trade and geopolitical troubles arising from changed policies of the United States under the Trump administration.

Our long-term call remains very profitable and we believe there is currently, a window of opportunity, where our readers can make money even in the shorter horizon by entering the call.

Trade idea:

Sell Eurostoxx50 at the current rate of 3035 and at each rally of 35 points with a stop loss around 3265 area and a target around 2630 area.

 

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