Sunday, March 27, 2011

The BETXT Index Bullish Potential

The BETXT Index has just stepped into a new cycle with a strong bullish potential. As noticed in the weekly chart above, the first stop in the uptrend could be the April 2010 highs and the weekly SMA around 620 and then the 750 area towards the cycle end in August.

In the daily chart above we notice the index is marching towards the April 2010 highs around 620 after entering with a trending mood in a new cycle (ending mid-April until when the target might be touched) and shattering the 61.8% final Fib retracement. With all three moving averages heading higher the picture is bullish while the rising 50-days EMA playing the stop loss level.

Wondering if the recent FP inclusion in the index is distorting the picture? Time will tell but we have no surprises so far and I would bet the targets (and stop losses) stay the same without any needed adjustments.

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