Technical

Mexbol Technical Analysis 01/03/2016

The Mexbol Index (Mexican Bolsa IPC) has been in a large consolidation since June 2012 as we can see in the weekly chart (Chart 1).

Recently, it broke an important level at 42,430 units and has found support on the back of the recent downtrend (Chart 2), where it forms a Morningstar and a pin bar.These, in our view, indicates further strength supported by the recent risk-on sentiment.

We are buyers on any price weakness above the 42,430 confluence level.  

Chart 1.

20160301-IPC W

Chart 2.

20160301-IPC D

Analyst: Victor Campos, CFA.
Source: LATAMPM with Tradingview.com data. Prices as of March, 1st , 2016.

 

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