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Technical Analysis: Stoxx 600 Real Estate Cap : pull-back towards the support

Technical Commentary : The Eurostoxx6000 Real Estate Cap includes the 21 largest companies in the Construction sector. It displays a clear bullish trend evidenced by a succession of troughs and peaks which are higher....


Day By Day – Indipendent Research

09052011 1


Close price 123.85

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 125,6 / 128,5 pts
Supports 121,5 / 119,2 pts

and higher and sustained by the100-day moving average. The momentum is strong but the proximity of a major resistance dating from 2008 at 128.50 points, however, urges one to adopt some caution about the configuration of this sector in the medium-term.

Anticipation :
In the shorter-term, prices have marked a bullish momentum built from the rebound off the major level at 119.20 points,; a former resistance which has become a support, reinforced by the 100-day moving average. The acceleration has allowed for the overflow of the descending resistance which covered the prices from the beginning of March. The recent pull-back off the latter, reinforced by support at 121.50 points, should help revive the bullish movement.

We are positive in the short-term and envision the rallying towards the 2008 major resistance at 128.50 points with an intermediate  target of 125.60 points.

We set the invalidation threshold for this positive scenarioslightly below the support at 121.50 points.


Traker’s Name Leverage Expense ratio
AMUNDI ETF REAL ESTATE REIT IEIF x1 0,35%
LYXOR ETF MSCI Europe Real Estate x1 0,40%

Follow-up Analysys: Our DBD Tracker dated 18/04/2011 recommended the purchase of  Eurostoxx600 Food & Beverage. Since then, the second intermediate target at 363.40 points was reached and overflowed, a performance of 3.4%.


* 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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