Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Tuesday, February 7, 2012

Stocks performance is cyclical

A comparative analysis of BET-FI and BET shows a better performance of the financial institutions (SIFs and FP) in the last 4 months (on mid-term).

The first chart shows the BET-FI index evolution while the second chart represents the ratio of BET-FI and BET. An increasing slope indicates a superior performance of BET-FI index.
A pertinent interpretation would be that when the market is declining, it is preferable to hold shares of BET index and in the moment that the market gives recovery signals (of increasing), it is preferable to change the shares with the ones from BET-FI.

CONCLUSION: pay attention to the next trend reversal!

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