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

Day By Day – Indipendent Research

    
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.

DISCLAIMER

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

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Day By Day – Indipendent Research

    
Anticipation :

In the shorter term, prices are also evolving in a bullish dynamic, alternating acceleration and consolidation phases. The latest  consolidation phase has been contained by the 369.50 points support, corresponding to the 38% retracement ratio of the last  bullish impulse. This solid level should allow the trend to resume towards the 387 points resistance – March 2012 highs.

The 100-day moving average (ascending) is nearby and confirms our anticipation.
We are short-term bullish and we set the invalidation threshold of this scenario slightly below the 369.50 points support, which  breach would generate a deeper correction towards the 360.40 points support.

DISCLAIMER

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