Technical Analysis: STEX 600 Insurance Index : toward the April 2011 tops

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Technical Commentary :
The STXE 600 Insurance index is composed of the 32 most important companies among the European insurance sector….....

Day By Day – Indipendent Research

Since a low in September 2011, it has been evolving within a bullish dynamics sustained by the 50-day moving average. This trend was recently confirmed by the overflow of the previous March 2012 peak. The movement should continue during the coming weeks towards the February 2011 tops at 182.40 points; this level merges with the target calculated by adding the size of the former major bullish leg (September 2011 to March 2012) to the latest significant low (blue arrows).



Anticipation :

In the shorter term, the recent impulsive movement triggered the overflow of the 116.10 point major resistance. This level has been penetrated again but prices did not fall strongly: technically, it is a sign of strength. The first support, at 162.50 points, has even triggered a bounce that should boost the trend toward the 175 points resistance (April 2011 tops), with 170.10 points as an intermediate target. The trend is therefore clearly bullish and we set the invalidation level of this scenario slightly below the 162.50 points support – where the market recently bounced.


Close price 165.62

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 170,1 / 175 pts
Supports 162,5 / 154,5 pts

Follow-up Analysys: On September 10th, we have recommended the purchase of Nikkei 225 index ETFs related. Since then, the rally we expected has occurred and our 9150 points target has been reached.


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Source: ETFWorld – Day By Day – Indipendent Research



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