Technical Analysis: EuroMTS 5-7 year index : the bullish dynamics resumes

europa bandiera b

Technical Commentary :
The EuroMTS 5-7 year index is a Eurozone government bonds basket index, whose durations range from 5 to 7 years. Coupons are reinvested.....

Day By Day – Indipendent Research

This index just restarted a bullish dynamics, initiated in November 2011 and confirmed in February 2012 with the clearing of the 176.10 points major level (2011 highs). The direction of the 50-day moving average confirms the rising movement and nothing seems to be able to stop the trend in the coming weeks. We are therefore bullish over the midterm.



Anticipation  :

On the short term side, prices just broke out of a 4-month long sideways consolidation period by breaching the former resistance (now support) at 180 points. The bullish dynamics is thus restarted. The first target of this movement is located at 183.90 points, this level being calculated by projecting the height of the previous consolidation area (blue arrows). We are therefore positive in the short term and we expect prices to reach this resistance in the coming sessions.We set the stop loss of this positive scenario slightly below the 180 points support; a break of this level would delay any rally.

Close price 181.15

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 183,9 / 186,4 pts
Supports 180 / 177,3 pts

Follow-up Analysys: On July 2nd we recommended the purchase of the MSCI Brazil index ETFs related. Since then, the bounce we expected on the 2400 points major support occurred and our 2645 points target has been reached within a powerful rally: the performance is +2.1%.


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Source: ETFWorld – Day By Day – Indipendent Research



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