FxWirePro Call Review: Maintain short positions in SGX FTSE China A50 index; upside correction likely

In May this year we called on our readers to go short in Chinese shares; to be specific SGX China A50 future, which is a future contract on largest 50 A share companies by full market capitalization of the securities listed in Shanghai and Shenzhen stock exchanges. A CFD (Contract for difference) instrument is also available on SGX A50 future; that is CHN50 offered by FXCM. Here is the link, https://www.econotimes.com/FxWirePro-Sell-SGX-FTSE-China-A50-Future-targeting-15-percent-decline-1298413

The index (CHN50) has been declining after topping around 14900 area in January this year and in May we urged readers to go short on the index at the then current rate of 12550 area suggesting further decline citing trade tensions between the U.S. and China and higher interest rates.

The index declined to 10800 area (very close to our final 10500 target area) before a bounce back and the index is currently trading 11310 area.

Trade idea:

In this review, we would like to urge our readers to maintain short positions as we extend our final target from 10500 area to 9500 area. However, a correction looks increasingly likely and might even push the index to 12000 area. The correction would be an opportunity to enter fresh short positions.