Don't Ignore This Chart!

Russian Index Forms Bearish Continuation Pattern


The Russian Trading System Index ($RTSI) is struggling this year and down around 6.5% year-to-date. In contrast, the S&P 500 is up over 7% year-to-date and the Eurotop 100 ($EUR) is up around 6.5%. In addition to relative weakness, the index sports a bearish continuation pattern after a breakdown in February. Notice that the index broke support in February and then formed a triangle the last few months. This triangle represents a rest after the sharp decline and a break below triangle support would signal a continuation lower. Also notice that the rising 200-day SMA is right near triangle support. The triangle measures around 100 points and a break near 1070 would target a move to the 970 area. Take this target with a grain of salt! 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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
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