OLANDA 17

Technical Analysis: AEX 25: towards the major resistance

The AEX index- for the Amsterdam Exchanges index – is an index composed of the 25 largest Dutch companies listed on the Amsterdam Stock Exchange. Since April, it has been in a bearish trend as evidenced by a succession of troughs ...


Day By Day – Indipendent Research


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and peakswhich are lower and lower and guided by the 50-day moving average. This dynamic was stopped by the strong support at 265 points, which has built a foundation base. A significant recovery can henceforth be envisioned, so we are therefore bullish in the medium-term.

10-10-2011_1


Close price288.31

2 months OpinionBULLISH
2 weeks OpinionPOSITIVE

Resistances295,7 / 300,9 pts
Supports284,1 / 276,1 pts

Anticipation :

In the short-term, prices are evolving in a very volatile manner in a range between the support at 265 points and the strong resistance located at 295.70 points. The recent “bear trap” (brief excess below the support at 265 points) reflects the return of a buyer sentiment in the market. This was followed by a first bullish impulse, then a second, which allowed for the overflow of the level at 284.10 points, reinforced by the 50- day moving average. The configuration is now clearly bullish, and argues in favor of an extension of the current acceleration. We are therefore short-term positive and envision a rallying towards the strong resistance at 295.70 points in future sessions. We set the invalidation threshold of this positive opinion slightly below the support at 276.10 points.
Traker’s NameLeverageExpense ratio
AMUNDI ETF MSCI NETHERLANDSx10,25%
ETFX AEX Fundx10,30%
iShares AEXx10,30%
Lyxor ETF Leverage AEXx10,40%
SPDR AEX Index ETFx10,30%
Think AEX Trackerx10,30%

Follow-up Analysys: Our DBD Tracker dated 03/10/2011 recommended the purchase of a pullback in the Dow Jones Industrial Average. Since then, the scenario unrolls as anticipated and currently offers a performance of 4.8%.


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Source: ETFWorld – Day By Day – Indipendent Research


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