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Technical Analysis: Stoxx Europe 600 Travel & Leisure index : on the lowest threshold of the rectangle

Technical Commentary :
The Stoxx Europe 600 Travel & Leisure index is composed by the 20 most traded companies among the European travel and leisure sector. Thanks to the strong recovery from. ...


Day By Day – Indipendent Research


November 2011 and May 2012, the index has been able to reach its former 2011 highs, a major resistance area. This obstacle has stopped the bullish dynamics and prices have been consolidating since a couple of weeks in a wide rectangle. We are neutral over the mid-term as we are waiting for the exit off this pattern before taking a stronger opinio
 

19062012


Anticipation  :

On the short term side, prices tested the 118.40 points lowest threshold of the rectangle on three occasions in the last month. The reaction on this level, combined to the 38.2% Fibonacci ratio of the previous rise, is vivid. We can therefore expect joining the 123.90 points resistance, a level that is defined as the middle of the rectangle consolidation area.We are positive in the short term and we set the invalidation level of this scenario slightly below the 118.40 points support. Actually, the breach of this level would trigger a deep correction.
Close price 120,52

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 123,9 / 129,7 pts
Supports 118,4 / 116,3 pts


Follow-up Analysys: On May 28th, we recommended the purchase of EPRA EUROZONE index ETFs related. Since then, prices slightly rose but our bullish scenario remains valid.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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