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Technical Analysis: MSCI Daily TR World Net Financials: strong bullish recovery

The MSCI Daily TR World Net Financials index is a stock market index tracking the performanceof a basket of....


Day By Day – Indipendent Research


…financial stocks listed on major financial centers. It had, since February 2011, a powerful bearishmomentum. It stopped near the major support at $78.62, dating from 2009, above which it formed a double-bottom reversal pattern. The triggering of this configuration resulted in a strong recovery: we are therefore bullish in the medium-term; prices can move back to test the resistance at 103.8 points.
 

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Anticipation  :
In the shorter-term, the recovery movement, initiated by the triggering of a «double-bottom», is showing remarkable strength. The levels at $90.66 and $95.07 (previous peaks), as well as the 100-day moving average (a dynamic resistance), were actually overflowed in a straight line. These technical elements highlight the power of the movement and therefore argue for its extension in upcoming sessions. A consolidation up towards 95 would be welcome.
We are therefore short-term positive, and envision a rally towards the $103.80 resistance (strong resistance: a 62% retracement of the decline).
We set the invalidation threshold for of this positive scenario slightly below the support at $90.66.

Close price 97.73

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 103,8 / 109 pts
Supports 95,07 / 90,66 pts


Follow-up Analysys: Our DBD Tracker dated 24/10/2011 recommended the purchase of the Russia RTS index. Since then, prices have risen by more than 7%, far exceeding our target of 1527 points.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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