Russian Equities Poised For A 10% Rally In The Coming Weeks?

Published 02/10/2015, 06:20 AM
Updated 07/09/2023, 06:31 AM

The sharp drop in the MarketVectors TR Russia ETF (NYSE:RSX) to 12.50 in December 2014 has not been sustained, with prices settling into consolidation through January. This multi-week stabilisation has helped unwind oversold weekly studies, and with positive divergence now unfolding against a developing bullish signal on the Tension Indicator, the expectation in the coming weeks is for higher levels to attract.

Confirmation would be a clear break above the 16.53 high of 23 December, with improving investor sentiment then opening up the next significant reactions at the 18.20, (38.2%) retracement of the June-December fall. Support into limited losses is at congestion around 15.00, and extends to critical support at the 14.00 range lows. An unexpected break beneath here would lead to fresh downside risks.

RSX Weekly

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