Technical Analysis: MSCI Taiwan : Recovery of the bullish momentum


The MSCI TAIWAN Index replicates the performance of Equities listed on the Taiwan Stock Exchange and the Gre Tai Stock Market (OTC Market Taiwan). In the medium-term, the Index presented a sustained bullish trend supported by the 100-day ....

Day By Day – Indipendent Research

18042011 1

Close price 316.7

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 329,6 / 337,5 pts
Supports 307,4 / 303 pts

moving average and marked by a succession of troughs and peaks which were higher and higher. The latter has been weakened in February 2011 by a correction down towards the 292.20 points support. Since then, the main levels, including the moving average, have been reintegrated and a resumption of the bullish trend recovers. We are bullish for the coming weeks.

Anticipation :
More recently, the pull-back to the major support at 303 points, following its reintegration, has confirmed the importance of this threshold. Similarly, the presence of a bullish divergence in the stochastic indicator validates the upswing built from the support at 292.20 points. The current bullish impulse, reinforced by the opening of a gap, should allow for the markings of new peaks at future sessions.

We are positive in the short-term, and considering the rallying towards the resistance at 337.50 points, with an intermediate target at 329.60 points.

We set the invalidation threshold for this positive opinion slightly below the support at 307.40 points.

Traker’s Name Leverage Expense ratio
CS ETF (IE) on MSCI Taiwan x1 0,65%
db x-trackers MSCI TAIWAN TRN INDEX ETF x1 0,65%
EasyETF TSEC Taiwan (EUR) x1 0,60%
iShares MSCI Taiwan x1 0,74%
Lyxor ETF Taiwan x1 0,65%

Follow-up Analysys: Our DBD Tracker dated 04/04/2011 recommended the purchase of the ISE National 30 Index. Since then, the target of 85,980 points has been almost reached (we consider our position closed), a performance of 7.3%.

* 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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