RUSSIA_MATRIOSCHE

Technical Analysis: The Russian RTS index $: the bullish dynamics resumes

Technical Commentary: The RTS index (Russian Trading System) is an index composed by 50 different equities among the Moscow Stock Exchange. An inverted head & shoulders chartist pattern has been triggered in the beginning of the year: since then, the ....


Day By Day – Indipendent Research


…index is registered in a bullish trend with ascending tops and bottoms. This dynamics should allow a rally toward the 1765 points major resistance, and even its overflow.We aremid-term bullish.
 
23042012_1

Anticipation  :
On the short term side, prices just bounced off the 1572 points support. This solid threshold is a former resistance tested on severaloccasions between October and December 2011; the area is also confirmed by the 100-day moving average, a dynamic support. This level should therefore trigger a clear bullish dynamics toward the former highs and even beyond. We are positive over the short term and we expect the test of the 1678.60 resistance in the coming sessions.

We set the invalidation level of this bullish scenario slightly below the 1572 support, a level below which the outlook would turn neutral or negative.
Close price1585.18

2 months OpinionBULLISH
2 weeks OpinionPOSITIVE

Resistances1630,1 / 1678,6 pts
Supports1572 / 1505,1 pts


Follow-up Analysys: The April 16th recommendation was the purchase of Markit-iBoxx $ Treasuries 3-7 index ETFs related. Prices have been rising since then and the first and intermediate target at 194.20 is now close.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 


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