Tuesday, February 28, 2012

BETFI Index Rally is Taking a Break

BETFI Index marched higher and shattered the previous post discussed target area around 23 000 points (see daily chart above). The index rallied to the next resistance around 25 000 points until mentioned mid February target. Since then a distribution have started with volume-price divergence which may precede a correction back to the 23 000 area. 

The potential correction is supported by the emerging relative BETFI weakness against BETXT indicated in the daily relative chart below.

In the bigger picture, the weekly BETFI Index before Friday close (see weekly chart below) is still trending up but pausing at the potential internal trend line resistance which may bring a correction back to the broken 23 000 points area. 

The up break of the 23 000 area coupled with the break of the 200 weeks SMA and a bullish 20 and 50 weekly EMAs crossover bring the index in a medium term uptrend that may target the 2010 highs around 34 000 points if last year's highs around 27 000 points are cleared. From this perspective, any pullback may be a medium to long term buying opportunity which should be reconsidered if the index falls below 20 000 points.

The weekly emerging relative strength of BETFI against BETXT following the break of a 4 year under performance (see weekly relative chart below) is also pointing to a medium to long term strong BETFI index performance.


farmland investing said...

I agree with the charts. Not sure what will happen near term, but the medium to long term looks very good.

Cosmin said...

Se pare ca bet-fi nu e hotarit incotro sa o ia...Cum vezi evolutia pe termen scurt : retesteaza maximele locale sau merge mai jos ?

Florin TOTH said...

Salut Cosmin,

Ultima analiza ramane valabila, ma astept sa retesteze maximele locale si chiar sa mearga mai sus daca zona de 27000 va ceda.