FxWirePro Call Review: Short call on FTSE100 threatened by trade optimism

The recent agreement reached between the U.S. President Donald Trump and European Commission President Jean Claude Juncker to formally begin the trade negotiations have energized the equity bulls across the world, and it is threatening our short call on the United Kingdom’s benchmark index FTSE100 or UK100 (CFD of FTSE100).

Earlier this month, 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

However, our latest calculations suggest that the index got trapped in a bull-bear fight over direction as the trade optimism energized the bulls and it looks likely that the UK will undergo a so-called ‘soft Brexit’ rather than a hard one.

Our calculations suggest that while bears are targeting the above-mentioned area, the bulls are targeting 8100 area. The price needs to break decisively below the 7400 area and to reduce the bullish pressure.