While The White House’s Jay Carney issued his “sell” recommendation week ago now, it appears Citi’s FX techicals group have decided to do the unpatriotic thing and look for a positive “rusk”-on environment as Russia’s MICEX stock market index begins to test pivotal resistance…
“costs”
Via Citi FX Technicals,
Russia’s MICEX Index is beginning to test pivotal resistance around 1425-1431 (converging 200 day moving average, horizontal resistance and the 76.4% retracement of the February-March collapse on the log chart). In particular, the 200 day moving average has served remarkably well as support/resistance with the two breaks on a closing basis leading to accelerated moves in the prior trend (see circles).
A break through there on a closing basis, if seen, opens the way initially towards the 1511-1518 area (highs of the range from November – February) and then towards 1538 (October high).
Not shown but worth noting: RUB appears to have further room to appreciate with supports on USDRUB at 33.90 and EURRUB at 46.22 (both supports are the 200 day moving average). At the same time Russian yields appear to be topping out (with both 2s and 10s potentially setting up for double tops with breaks below 7.7% and 8.75%, respectively). This all further supports Russian assets and suggests we will see the break of resistance on the MICEX Index.
via Zero Hedge http://ift.tt/1mTHKUL Tyler Durden