Technical Analysis: STOXX Europe 600 Telecom index: toward the 258.20 points resistance


The STOXX Europe 600 Telecom index is composed by 21 different equities among the telecom sector in Europe. The ....

Day By Day – Indipendent Research

…index has been consolidating for severalmonths in a wide range between the 232.15 points support and the 266.25 points major resistance.As long as we do not see a clear reversal pattern within the range, we cannot expect any medium term trend: we are therefore neutral for the weeks to come.

Anticipation  :
On the short term side, the recent excess below the 244.20 points support (a bear trap after several consecutive tests) has generated a sharp bullish reaction. This reaction triggered the overflow of the descending resistance (blue line on the chart) that has capped prices for two months. The overflow of this level frees a bullish potential toward the 258.20 points, the next resistance.
We are therefore positive in the short term and we expect the test of 258.20 points resistance in the coming sessions.
We set the invalidation of this opinion slightly below the 249 points support, a level confirmed by the 100-day moving average. Any pullback below this point would also mean a penetration of the descending resistance, therefore the invalidation of the scenario.

Close price 251.69

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 258,2 / 266,25 pts
Supports 249 / 244,2 pts

Follow-up Analysys: On March 19th, we have recommended the MSCI World Financials Net Total Return Index related ETFs. Prices are currently pulling back on the 102 points first support. Our 111.10 points target scenario is still valid.


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Source: ETFWorld – Day By Day – Indipendent Research



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