Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
In July this year, we called on our readers to go short on UK100 (CFD of FTSE100) at the then current rate of 7680 area with a target of 7000 area and stop loss around 7920 area, https://www.econotimes.com/FxWirePro-Short-term-Outlook-Sell-FTSE100-UK100-targeting-7000-1405048
Our call was based on signs of market exhaustion after the big rally that began after the February selloff, which pushed the index to a new all-time high of 7900 area, along with concerns surrounding the outcome of the Brexit negotiations with the European Union, and a slowdown in the economy, which was both visible in the UK housing markets and GDP growth rate.
Since the call, the situation hasn’t changed much. In the second quarter of this year, the UK economy grew by just 1.2 percent y/y (better than the first quarter of 1.1 percent growth), the weakest pace in six years. In addition to that, a survey conducted by the Royal Institute of Chartered Surveyors (RICS) showed that the UK’s housing market is weakening steadily and stands at the weakest in at least two years.
The recent selloff in the global stock market has pushed our call further into profits as the index (UK100) is currently trading around 7100 area. The call is +580 points in the money.
Trade idea:
We would like to urge our readers to maintain short positions in the index as we extend our target from the 7000 area to 6500 area. The target likely to see a further extension.
