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Technical Analysis: STOXX Europe 600 Insurance : pull-back to the triangle

The STOXX Europe 600 Insurance Index includes the 32 largest companies in the European insurance sector. It showed an uptrend supported by the  ....


Day By Day – Indipendent Research


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…100-day moving average. The momentum was then reversed in February, while approaching the major resistance dating from 2008 at 185.20 points, as evidenced by the succession of peaks and troughs becoming increasingly lower. We are bearish in the medium-term and anticipate a return to a contact with the major support at 157 points in the coming weeks.

30052011 1


Close price 164.44

2 months Opinion BEARISH
2 weeks Opinion POSITIVE

Resistances 167,5 / 170 pts
Supports 162,3 / 159,4 pts


Anticipation :

In the shorter-term, the prices have marked a bearish acceleration following the breaking out of a consolidation phase inside a triangle. It was stopped by the support at 159.40 points that led to a sharp bullish reaction. This type of configuration suggests a pull-back towards the pattern and argues in favor of restoring prices to contact with the lower threshold of the triangle. We are positive in the short-term and envision a rallying towards the resistance at 170 points, with an intermediate target of 167.50  points. We set the invalidation threshold for this opinion slightly below the support at 162.30 points.

Traker’s Name Leverage Expense ratio
AMUNDI ETF MSCI EUROPE INSURANCE x1 0,25%
EasyETF Stoxx Europe 600 Insurance x1 0,30%
Lyxor ETF Stoxx Europe 600 insurance x1 0,30%

Follow-up Analysys: Our DBD Tracker dated 09/05/2011 recommended the purchase of the Stoxx Europe 600 Real Estate Cap index. Since then, prices have reached our target of 125.60 points, or a performance of 2.1%.


* 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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