Stoxx 600 Health Care Index: a strong support in a trading range

In September 2017, I wrote an article about the STOXX 600 Supersector Europe Health Care Index, pointing out that there were technical signs of a delicate but constructive situation. I indicated that in the weekly chart, we could notice that prices touched the uptrend line three times (blue arrows) and we had a new potential rising low with the oscillator turning up (see vertical red dotted line). But the price hadn’t enough strength, so we had a breakout of the medium term uptrend line. Later, for the third time, the price touched the 38,2% Fibonacci level that could be considered now a strong support (green arrows), and the oscillator up crossed the zero line.

Looking to the daily chart, we can observe that prices are now in a big trading range.

A look at the relative strength chart shows that the ratio broke down the uptrend line, but creating an interesting new, slow and long low at the level of the 2008 high, and then up crossing the 200 days moving average. A sign that the index has regained its strength.

 

Mario Valentino GUFFANTI CFTe – SAMT Vice President – Swiss Italian Chapter – mario.guffanti@samt-org.ch

Disclaimer: the above article is for general information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.