POLAND WIG 20 INDEX

Thanks to wordpress.com’s improved statistics page, I can now see the visitor’s country profiles. This helps me to diversify my analysis in order to create a larger community at Tech Charts. Tech Charts blog is having visitors from more than 20 different countries everyday. In today’s post I’m analyzing Poland’s WIG 20 index with my usual template (Weekly chart + RSI + 200 day moving average). I like to look at the big picture and weekly charts help me to see the major trends.

Poland’s WIG 20 Index respected the 200 day moving average both during the downtrend and the uptrend. Between 2009 and 2011, index trended higher after finding support each time at the 200 day moving average. RSI confirmed the uptrend by finding support at 50 level. In mid-2011 WIG 20 index broke down its long-term moving average at 2,700 level and fell sharply to test 2,000 levels. Since the last quarter of 2011 WIG 20 has been forming a sideways consolidation range with the boundaries standing at 2,400 and 2,180. Upper boundary of the consolidation range and the long-term moving average are both forming resistance at 2,400 level. In the intermediate term index is in a sideways consolidation. A breakout will follow soon.

A break above 2,400 level will reverse the last 8 month’s downtrend and will be positive for the index. A break below 2,180 level will resume the downtrend and the consolidation pattern will be confirmed as a symmetrical triangle continuation pattern.