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Technical Analysis: Euro MTS AAA Government index: positive in the short-term

GERMANY 24

The Euro MTS AAA Government index reproduces the evolution of a basket of bonds in the Euro zone which are AAA rated ...


Day By Day – Indipendent Research


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(or the equivalent, according to the agencies). All the maturities are represented. Today, the countries whose debt is represented are Germany, France, the Netherlands, Finland and Austria. It presents, in the medium-term, a sustained bullish dynamic, built by the support of the 50-day moving average. After retracing 50% of the rise, prices have now resumed their forward march. We are therefore bullish in the medium-term.

02082011


Close price 178.49

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 179,6 / 181,7 pts
Supports 175,63 / 173,17 pts

Anticipation :

In the short-term, prices steadily rose following the rebound off the major support at 169.40 points.The recent pull-back off 175.63 points has re-launched the movement and allowed for the overflow of the major resistance at 177.20 points (62% of the bearish correction), previously repeatedly tested. The 50-day moving average also plays the role of a  dynamic support, and thus is enhancing the anticipation of a favorable scenario.
We are positive in the short-term and look forward towards the previous peaks at 181.70, with an intermediate target of 179.60 points.
We set the invalidation threshold for this positive scenario slightly below the support at 175.63 points.

Traker’s Name Leverage Expense ratio
AMUNDI ETF AAA GOVT BOND EUROMTS x1 0,14%
LYXOR ETF EUROMTS AAA GOVERNMENT BOND x1 0,17%

Follow-up Analysys: Our DBD Tracker dated 18/07/2011 recommended the purchase of the S&P GSCI All Metals Capped. Since then, prices are approaching our target at 384.10 points, or a performance of 2.3%.


* A leverage of 1 means that the ETF/Tracker has the same performance as the underlying index. A leverage of 2 indicates that the ETF/Tracker will have twice the performance of the underlying index. A leverage of -1 indicates that the ETF/Tracker will perform opposite that of the index: it will rise while the index falls, and vice versa.


DISCAIMER

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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