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Technical Analysis: STOXX Europe 600 Health Care : rebound off the major support

GRAFICO2

The STOXX Europe 600 Health Care Index brings together the 34 largest companies in the health sector of Europe. It presents a bullish dynamic materialized by a succession of troughs and peaks which are higher and higher. Similarly  ...


Day By Day – Indipendent Research


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…the orientation of the 100-day moving average confirms the direction of the movement. However, the recent bearish correction turned out to be relatively deep and could therefore undermine the current trend. We are therefore neutral in the medium-term and not anticipating new peaks in the two to three months to come.

27062011 1


Close price 399.48

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 401,54 / 407,6 pts
Supports 394,5 / 381,8 pts


Anticipation :

In the short-term, prices correct the strong bullish impulse initiated in mid-March. They are now close to the major level at 394.50 points, a former resistance which has become a support. This level is important: it is close to the 50% retracement of the previous impulse and is reinforced by the 100-day moving average (a dynamic support). Contact with this solid support should result in a technical rebound.

We are short-term positive and envision a rally towards the resistance at 407.60 points, with an intermediate target of 401.54 points.

We set the invalidation threshold for this opinion slightly below the major support at 394.50 points.
 

Traker’s Name Leverage Expense ratio
AMUNDI ETF MSCI EUROPE HEALTHCARE x1 0,25%
EasyETF Stoxx Europe 600 Health x1 0,30%
Lyxor ETF Stoxx Europe 600 Health Care x1 0,30%
SPDR MSCI Europe Health Care ETF x1 0,30%

Follow-up Analysys: Our DBD Tracker dated 06/06/2011 recommended the sale of the CAC 40 index. Since then, prices have reached our target of 3760 points, a performance of 2.6%.


* 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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