Technical Analysis: Stoxx Europe 600 Insurance index: bullish breakout of the triangle

LENTE WisdomTree

Technical Commentary The Stoxx Europe 600 Insurance index is composed of the 32 most representative stocks of the European Insurance sector. …… 

Day By Day – Indipendent Research

This index  resumed  its bullish  trend after a  reverse head-and-shoulder pattern,  formed  last summer, was  triggered. This move, now breaking out of a consolidation phase, should continue during the weeks to come. We are bullish over the medium term.


Anticipation :

In the shorter term, prices are indeed breaking out of a consolidation phase, shaped as an ascending triangle. The trigger of this continuation pattern, with a gap (proof of strength), should generate a bullish acceleration. The theoretical  target of  the move  to come is at 182.40 points, level corresponding to a major resistance dating from 2011. The 50-day moving average direction also confirms this bullish anticipation.
The  short-term  trend  is  thus  clearly  bullish. We  set  the  invalidation  threshold  of  this  scenario  slightly  below  the  169.50 points support, which reintegration would trigger a bullish trap, invalidating any bullish anticipation.

Close price 172,19

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 174,7 / 182,4 pts
Supports 169,5 / 163,25

Follow-up Analysys:On  November  19th,  we  recommended  the purchase of the FTSE MIB index. Since then, prices  bounced  as  expected,  and  reached our 15810 points target.


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Source: ETFWorld – Day By Day – Indipendent Research





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