Technical Analysis: Markit iBoxx £ Liquid Corporates Long Dated Index : continuation of the bullish momentum

banche 2

The Markit iBoxx £ Liquid CorporatesLong Dated Index provides exposureto the 40 major bonds of the most liquid companies, denominated  ....

Day By Day – Indipendent Research

…in sterling and rated «investment grade». It has a strong bullish dynamic, representedby a series of successively ascending tops and bottoms and supported by the 200-day moving average.Nothing seems to call into question the trend for the coming weeks so we are bullish in the medium-term.



Anticipation  :
In the short-term, following an intermediate correction from the resistance at 185.40 points, the index rebounded off the major level at 178.70 points, a former resistance which became a support and now reinforced by the 200-day moving average. The bullish dynamics therefore continue after the formation of a couple of troughs, with a peak higher than the previous ones. The bullish crossing of an oversold MACD indicator (an indicator of the strength of the movement) has also confirmed this scenario.
We are thereforepositive in the short-term and envision rallying towards the resistance at 188.20 points (the target achieved by projecting the range of 168.70 to 178.70 points + the projection of the last bullish impulse: blue arrows) with an intermediate target of 185.40 points corresponding to the previous peaks.
We set the invalidation threshold for this positive scenario slightly below the major support at 178.70 points.

Close price 182.37

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 185,4 / 188,2 pts
Supports 178,7 / 175,7 pts

Follow-up Analysys: The tracker dated 05/12/2011 recommended selling the DAX30. Since then, prices moved much closer to our target at 5782 points. Given the current market nervousness we recommend to close this position.


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Source: ETFWorld – Day By Day – Indipendent Research



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