CZECH REPUBLIC PRAGUE SE INDEX

Few days back I gave POLAND WIG20 Index as an example of a 2 year-long flat range breakout. We are seeing global strength in equities and indices are breaking out of long-term consolidation patterns. Today I’m looking at Czech Republic Prague SE Index. Symmetrical triangles are usually formed as continuation patterns. However, it is always better to wait for a breakout as they may turn into a base formation. In Prague SE Index’s case 1.5 year-long sideways consolidation range is breaking out on the upside and should be called as a base formation. The upper boundary of the consolidation range was at 1,010 levels, which was breached on the upside after today’s strong move. First target for the index will be 1,088. Technical outlook turns bullish on the Prague SE Index.