XU 30 INDEX – (TURKEY)

Is this a base formation or a short-term consolidation before the major break down and the resumption of the downtrend? Turkey’s XU 30 Index is holding above its 5 year-long uptrend and a break below 85K could turn into a sharp correction. Latest consolidation below the 200 day moving average has been weak and the counter trend moves had difficulty to close the gap between 100K and 105K. It is important to note that the index is testing its long-term trend for the 4th time over the analyzed period and a breakdown below this strong support will signal further downward pressure. Technical outlook would turn bullish only if the index recovers above 95K levels which is the 200 day moving average.