MEXICAN BOLSA TECHNICAL ANALYSIS- MAY, 12, 2016

Mexican Bolsa IPC 12/05/2016

At the end of March we recommended taking a bearish position in the Mexican IPC index. Since then it has consolidated and formed a symmetrical triangle with current price at breakeven from our entry.

IPC Index.

20160510-IPC D

While this formation could well be resolved to the upside putting in danger our current position, we are weighting more the price action on the weekly chart which shows an engulfing bearish at the top of the consolidation and consider that recent price action is a test of the pattern; therefore we maintain our bearish bias on the index.

IPC Index.

20160510-IPC W

 

Analyst: Victor Campos, CFA.

Source: LATAMPM with Tradingview.com data. Prices as of May, 10, 2016.

DISCLOSURE: The analyst or analysts responsible for this report may or may not have direct or indirect positions on the stocks and securities mentioned before, as of the date or after publishing. This report is for informational purposes only, based upon publicly available information. Accuracy and completeness of the information cannot be guaranteed. LATAM PM is not in any way be liable for claims related to this report. The information and analyses may not be suitable for your specific circumstances. Each investor shall make their own determination of the suitability of an investment of any securities referred to in this report.

 

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