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Technical Analysis: Stoxx 600 Construction & Materials : Bullish acceleration

The DJ Stoxx 600 Construction & Materials Index includes the 24 largest companies in the European Construction sector. Following the low point recorded in August 2010, the Index presents, in the medium-term, a sustained bullish trend, supported by....


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Day By Day – Indipendent Research


18042011 1


Close price 301.48

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 310,45 / 317,1 pts
Supports 297,5 / 285,9 pts

the 100-day moving average and marked by a succession of troughs and peaks which are higher and higher. The recent overflow of the 297.50 point level on which the prices had stumbled several times, confirms the continuation of the trend. We are bullish for the coming weeks.

Anticipation :
More recently, following an initial bullish impulse, the pull-back to support at 285.90 points reinforced by the 100-day moving average has revived the movement and led to the overflow of the 297.50 point level, a former major resistance, which became a support. The overflow of this key threshold releases a significant upside potential and therefore advocates an extension of the acceleration phase in progress.

We are positive in the short-term and target a rallying towards the resistance at 310.45 points, coinciding with the target produced by an extension of the previous impulse (blue arrows).

We set the invalidation threshold for this positive view slightly below the 297.50 support.

Traker’s Name Leverage Expense ratio
EasyETF Stoxx Europe 600 Construction and Materials x1 0,30%
Lyxor ETF Stoxx Europe 600 Construction and Materials x1 0,30%

Follow-up Analysys: Our DBD Tracker dated 18/04/2011 recommended the purchase of the DJ Stoxx 600 Construction & Materials. Since then, the first target has been reached at 360.40 points, a performance of 2.4%.


* 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.

 


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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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