Technical Analysis: MSCI TAIWAN: towards the top of the channel


The MSCI TAIWAN index tracks the performance of securities listed on the Taiwan Stock Exchange as well as the ....

Day By Day – Indipendent Research

… GreTai Stock Market (the OTC Taiwan market). It followed a bearish dynamic – recently materialized by a descending channel – which was stopped by the major support at 239 points, corresponding to a 50% retracement of the bullish movement carried out between 2009 and 2011. This solid support should contain prices for the weeks to come: we are neutral in the medium-term.

Anticipation  :
In the shorter-term, the last contact with the lower threshold of the channel, reinforced by the major support, has  generated a strong bullish reaction . This impulse enabled prices to rise above the level at 254.80 points, overflowing the 100-day moving average.The recent pull-back towards this support has re-launched the movement and the index now moves towards the upper threshold of the channel.
So we are short-term positive and look for a rallying towards the resistance at 268.16 points and then 272.6 in the next sessions.
We set the invalidation threshold for this positive scenario slightly below the support at 254.80 points.

Close price 260.66

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 268,16 / 272,6 pts
Supports 254,8 / 239 pts

Follow-up Analysys: The tracker dated 09/01/2012 recommended the purchase of the Stoxx Europe 600 Travel & Leisure. Since then, prices have reached our target of 117.50 points, or a latent performance of 3.2%. 


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Source: ETFWorld – Day By Day – Indipendent Research



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