XU30 INDEX – (TURKEY)

It’s been an eventful month so far in Istanbul. Anti-government protests resulted in a sharp sell-off in Borsa Istanbul. Protests can continue for sometime and markets can stay volatile. While it is difficult to understand the price action during these type of event-driven markets, support/resistance levels could be helpful in managing risk. XU 30 index slipped below its long-term (200 day) average at 97,200. This was also the lower boundary of the upward trend channel. Failure to push above the long-term average will be a clear sign of weakness and could result in further downward pressure towards 76,000-91,500 range. The uptrend that has been intact since the beginning of 2012 is damaged and for us to discuss positive price action and improving technical outlook, the index should breach above 97,200 levels in the following weeks.