Technical Analysis: Markit iBoxx Euro Liquid Corporates Index: the bullish dynamics unfolds


Technical Commentary: The Markit iBoxx Euro Liquid Corporates Index is composed by 40 different corporate bonds....

Day By Day – Indipendent Research

…issued in euros by various high graded companies (each bond has been rated BBB- or higher). The index price is registered in a clear bullish trend as shown by the rising and supporting 20-day moving average.We do not acknowledge any signs of exhaustionof this dynamics for the weeks to come: we are therefore bullish over the mid-term.

Anticipation  :
On the short-term side, the latest consolidation period has been contained by the 181 points support. When prices hit this strong level, confirmed by the 20-day moving average, they immediately bounced off in a powerfulmanner. This movement allowed overflowing the former high and the registration of new historical highs, a clear sign of strength: the bullish trend resumed. 

We are thereforepositive in the short term and we expect the rallying of the 184.30 points resistance, the first main obstacle of the dynamics. This level is also a target calculated by using the size of the previous impulse (blue arrows).

We set the invalidation level of this bullish analysis just below the 182.40 points supports. Actually, the breach of this level would trigger a consolidation period and would delay the rise we expect.

Close price 182.83

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 184,3 / 186,5 pts
Supports 182,4 / 181 pts

Follow-up Analysys: On March 12th, 2012, we recommended the purchase of MSCI AC Asia Pacific ex- Japan index related ETFs. The dynamics is slower than expected but our bullish scenario remains active with a target at 459 points.


This publication is solely intended as information and does not constitute any investment advice or an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any transaction. Althoughthis publicationis issued in good faith, no representation or warranty, express or implied, is or willbe made and no responsibility or liability is or willbe accepted by NYSE Euronext or by any of its officers, employees or agents in relation to the accuracy or completeness of this publicationand any such liability is expressly disclaimed.No information set out or referred to in this publicationshall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by NYSE Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. NYSE Euronext encourages you to reach your own opinion as to whether investments are appropriate or relevant and recommends you not to make any decisions on the basis of the information contained in this publication before checking it, as you will bear full responsibility for any use that you make of it. Persons wishingto trade products available on NYSE Euronextmarkets or wishingto offer such products to third parties are advised, before doing so, to check their legal and regulatory position in the relevant territory and to understand the related risks. All proprietary rights and interest in or connected with this publicationare vested in NYSE Euronext.No part of it may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation, transformation, or adaptation) without the prior written permission of NYSE Euronext. NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this publication include each and any such company as the context dictates. NYSE EuronextSM, Euronext®, trackers®, are registered marks of NYSE Euronext.

Source: ETFWorld – Day By Day – Indipendent Research



Artículos similares

Technical Analysis: Stoxx Europe 600 Real Estate index : Clearing of the 2011 highs


Technical Analysis: Stoxx Europe 600 Insurance index: bullish breakout of the triangle


Technical Analysis: MSCI EM Asia index: towards March 2012 highs