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

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.

03122012

    
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 price172,19

2 months OpinionBULLISH
2 weeks OpinionPOSITIVE

Resistances174,7 / 182,4 pts
Supports169,5 / 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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