Technical Analysis: STOXX Europe 600 Basic Resources : pull-back on the support


The STOXX 600 Europe Basic Resources Index includes the 31 most important stocks of the Commodity sector in Europe. Since the gradual reversal from the threshold at 450 points, the Index presents, in the medium-term, a bullish trend as evidenced by the orientation of the 100-day moving average. However, the bearish correction initiated following a series of failures at the resistance at 655.70 points between January and February 2011 appears to be relatively deep and could therefore affect a profound dynamic. The previous peaks have not been overflowed, or even met, which encourages a degree of caution regarding the configuration of the Index. We’re neutral in the medium-term.....

Day By Day – Indipendent Research

11042011 1


Close price 623,24

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 626 / 655,7 pts
Supports 610,8 / 592,2 pts

Anticipation  : In the shorter-term, prices perform a bullish acceleration due to a bearish excess performed below the support at 569.40 points. This strong momentum has allowed for the overflow of the levels at 592.20 points and 610.80 points. The pull- back towards the last one, now strengthened by the support and 100-day moving average (just reinstated), should allow for the overflow of the resistance at 626 points and give rise to a new acceleration phase.  We are positive in the short-term and target a rallying towards the resistance at 655.70 points; the previous peaks. We set the invalidation threshold for this positive scenario slightly below the support at 610.80 points.

Traker’s Name Leverage Expense ratio
ETFX STOXX 600 Basic Resources Fund x1 0,30%
Lyxor ETF Stoxx Europe 600 Basic Resources x1 0,30%
SPDR MSCI Europe Materials ETF x1 0,30%

* 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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