Technical Analysis: Euro MTS 10-15 Year Index : rebound off the major support


The EuroMTS 10-15 year Index is an index capitalizing on the coupons of a basket of bonds with a maturity of 10 to 15 ...

Day By Day – Indipendent Research

years in the Euro zone. It presented a bearish dynamic, as evidenced by the orientation of the 200-day moving average and the succession of descending peaks and troughs . A vigorous bullish impulse, however, resulted in a reversal of the trend, allowing one to anticipate a return towards the previous peaks in the coming weeks. We are bullish in the medium-term…..

05092011 1

Close price 172.56

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 176,5 / 178,5 pts
Supports 172,6 / 171,6 pts

Anticipation :

In the short term, prices have moved to test the resistance at 176.50€ before retreating and confirming the polarity of the major level at 172.60€: a former resistance, which became a support, merged with the 38% retracement threshold of the bullish impulse. The oversold condition of the index (shown by the stochastic indicator), in contact with the solid support, should lead to a rebound in prices and therefore to the further bullish movement.
We are short-term positive, and envision a rally towards the resistance at 178.50€ with an intermediate target of 176.50€. We set the invalidation threshold for this positive scenario slightly below the support at 171.60 €.
Traker’s Name Leverage Expense ratio
iShares Barclays Euro Government Bond 10-15 x1 0,2%
Lyxor ETF EuroMTS 10-15Y x1 0,17%

Follow-up Analysys: Our DBD Tracker dated 15/08/2011 recommended the purchase of the MSCI World Energy Sector. Since then, prices have reached our intermediate target of 307.90points, or a performance of 2.6%.

* A leverage of 1 means that the ETF/Tracker has the same performance as the underlying index. A leverage of 2 indicates that the ETF/Tracker will have twice the performance of the underlying index. A leverage of -1 indicates that the ETF/Tracker will perform opposite that of the index: it will rise while the index falls, and vice versa.



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Source: ETFWorld – Day By Day – Indipendent Research



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