Had the same situation with my parents crimson red cabriolet.
I tried using Meg's #105 but that helped a little. I stepped down to a coarser compound. An ultra compound should be fine for that kindof etching. After an ultra compound (I think 3m makes a good one that I use in these cases) then use a polish and finally wax that lil b.
PM me if you would like to talk about this more.
2012 BMW 128i 6MT Deep Sea Blue Metallic