The index lost over 29% since May 08. In the last review dated 27th July (57199) we stated ‘expect steady down move towards 52-53k in the next few weeks’. As against this, it created a low of 52345, exactly within the anticipated range, before recovery towards 56k.
After shedding over 29% in short span, the index is likely to stabilise, here, near 52-53k, even though the macro level picture remains bearish.
In the immediate near term, expect base building (consolidation) within 52-55k range, before attempting a more meaningful recovery (corrective rally) towards 60-62k in the next few weeks/month.
August 25, 2008
Base formation & moderate recovery is on cards...
Brazil Bovespa 55850 Positive > 52k(Corrective)
The index lost over 29% since May 08. In the last review dated 27th July (57199) we stated ‘expect steady down move towards 52-53k in the next few weeks’. As against this, it created a low of 52345, exactly within the anticipated range, before recovery towards 56k.
After shedding over 29% in short span, the index is likely to stabilise, here, near 52-53k, even though the macro level picture remains bearish.
In the immediate near term, expect base building (consolidation) within 52-55k range, before attempting a more meaningful recovery (corrective rally) towards 60-62k in the next few weeks/month.
The index lost over 29% since May 08. In the last review dated 27th July (57199) we stated ‘expect steady down move towards 52-53k in the next few weeks’. As against this, it created a low of 52345, exactly within the anticipated range, before recovery towards 56k.
After shedding over 29% in short span, the index is likely to stabilise, here, near 52-53k, even though the macro level picture remains bearish.
In the immediate near term, expect base building (consolidation) within 52-55k range, before attempting a more meaningful recovery (corrective rally) towards 60-62k in the next few weeks/month.
