Sunday, April 17, 2011

The BETFI Index Correction



As noted in a previous post, BETFI pulled back from the strong resistance found in the 27 000 - 28 000 points area where wave 3 of the uptrend (started in December 2010) may have ended. An a-b-c 4th wave correction started towards the 25 000 point support area which has almost been touched before reversing higher.

As long as the 25 000 point support area holds, the chances are the 5th impulsive wave starts running towards the 30 000 or even 34 000 area until end of May (see the chart above).


On the daily relative strength chart of BETFI against BETXT (chart below) we also notice a correction that reached support in the EMAs and broken downtrend area from where the BETFI may start overperforming again into the next time cycle.


Nevertheless, on the weekly relative strength chart (above) we notice BETFI is struggling to overperform while still being below the downtrend. We shall have to check if it breaks higher or continue lower during the next cycle.