MERVAL BUENOS AIRES (1123)
In the last review (21st Oct-1216) I said "Index is poised for a recovery provided able to close above 1216 i.e. first indication of strength; if this is done it could move to 1349, preferably by Oct end". The index "tanked" very next day (& also negated a reversal possibility with 1216 remained untouched) and overshoted the downside target (of 1.1k) by wide margins.
However, despite of "selling climax" where prices tends to move beyond the "technically" important levels, the index has closed exactly on 0.618% retracement level (of entire rise from 193 -Nov01 to 2354-Oct07) on monthly close chart. Therefore now the possibility of Index sustaining above 1k, at least till year end, is bright.
Apart from that (index bouncing back from 1k i.e. 0.618% Fibonacci no) here is another reason for my "pending" medium term "bullish" argument. See the inlaid "Daily" chart. The ongoing rally is so far the "biggest" rally since (over 37% since low of 819) May 2008(2257), indicating much required "strength" in the bulls camp. However the "flipside" is that we are still trading well below the important trigger of "1216". In the near short term expect a weakening of the prices if Index failed to close above 1150 or the important 1216. In such eventuality, expect a swift down move retesting the important zone of 1k, which could be provide a signal of "confirmation" for medium term reversal.
However, despite of "selling climax" where prices tends to move beyond the "technically" important levels, the index has closed exactly on 0.618% retracement level (of entire rise from 193 -Nov01 to 2354-Oct07) on monthly close chart. Therefore now the possibility of Index sustaining above 1k, at least till year end, is bright.
Apart from that (index bouncing back from 1k i.e. 0.618% Fibonacci no) here is another reason for my "pending" medium term "bullish" argument. See the inlaid "Daily" chart. The ongoing rally is so far the "biggest" rally since (over 37% since low of 819) May 2008(2257), indicating much required "strength" in the bulls camp. However the "flipside" is that we are still trading well below the important trigger of "1216". In the near short term expect a weakening of the prices if Index failed to close above 1150 or the important 1216. In such eventuality, expect a swift down move retesting the important zone of 1k, which could be provide a signal of "confirmation" for medium term reversal.
