Don't Ignore This Chart!

Russian Index Looks Vulnerable after Breakdown in Brent

 | 

The Russian Trading System Index has yet to break down, but it is positively correlated to Brent Crude and the recent breakdown in Brent could foreshadow a breakdown in the Russian Index. The chart shows the index stalling just above its rising 40-week EMA over the last few months. Meanwhile, Brent broke below a wedge trend line and exceeded its September low. The indicator window shows the Correlation Coefficient ($RTSI, $BRENT) in positive territory for most of the last two years. This means Brent and the Russian index tend to move in the same direction. The Russian Index is holding up for now, but chartists should watch the 40-week EMA for signs of a breakdown, especially if crude remains weak. 

****************************************
Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
*****************************************

Announcement from the Author

{{ announcement.content }}

Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus