Technical Analysis: STOXX Europe 600 Telecom : towards 254.10 points


The STOXX Europe 600 Telecom index comprises 21 companies representing the European telecommunications ....

Day By Day – Indipendent Research

…sector. It showed a bearish trend guided by the 100-day moving average. It stopped near the 220 point threshold, triggering a reversal pattern known as a «double- bottom», which has given rise to a strong recoverymovement. We are bullish in the medium-term, and anticipate the extension of the current dynamic towards the major resistance at 266.25 points.


Anticipation  :
In the shorter-term, a first acceleration phase allowed the index to rise above the level at 246.30 points, having performed several recoveries from the support and then overflowing the resistance. The prices are now consolidating between this solid support and the resistance at 254.10 points. The current contact with the lower threshold of this range, now reinforced by the 100-day moving average, should result in a new rebound towards the upper threshold. We are therefore short-term positive, and looking for a new test of the resistance at 254.10 points in the next sessions. We set the invalidation threshold for this positive scenario slightly below the support at 246.30 points.

Close price 246.53

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 254,1 / 260,2 pts
Supports 246,3 / 238,2 pts

Follow-up Analysys: Our DBD Tracker dated 14/11/2011 recommended the purchase of the Dow Jones Industrial Average. As expected, prices are currently declining back towards the support at 11,642 points. We remind you, however, that if it is broken, our (bullish) anticipation would be invalidated.


This publication is solely intended as information and does not constitute any investment advice or an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any transaction. Althoughthis publicationis issued in good faith, no representation or warranty, express or implied, is or willbe made and no responsibility or liability is or willbe accepted by NYSE Euronext or by any of its officers, employees or agents in relation to the accuracy or completeness of this publicationand any such liability is expressly disclaimed.No information set out or referred to in this publicationshall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by NYSE Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. NYSE Euronext encourages you to reach your own opinion as to whether investments are appropriate or relevant and recommends you not to make any decisions on the basis of the information contained in this publication before checking it, as you will bear full responsibility for any use that you make of it. Persons wishingto trade products available on NYSE Euronextmarkets or wishingto offer such products to third parties are advised, before doing so, to check their legal and regulatory position in the relevant territory and to understand the related risks. All proprietary rights and interest in or connected with this publicationare vested in NYSE Euronext.No part of it may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation, transformation, or adaptation) without the prior written permission of NYSE Euronext. NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this publication include each and any such company as the context dictates. NYSE EuronextSM, Euronext®, trackers®, are registered marks of NYSE Euronext.

Source: ETFWorld – Day By Day – Indipendent Research



Artículos similares

Technical Analysis: Stoxx Europe 600 Real Estate index : Clearing of the 2011 highs


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


Technical Analysis: MSCI EM Asia index: towards March 2012 highs