Down But Not Out On Peruvian Stocks
IGRA Equity Index and Daily RSI
Peru’s IGRA equity index is showing a great deal of respect for the 18-month trendline resistance, as global markets take a breather. The daily relative strength index (RSI) for the bourse is implying that Peruvian stocks are looking overcooked, potentially acting as a sell signal for investors.
I don’t rule out the possibility that a retracement of recent gains may be at hand, and my tight 9,240 stop is still firmly in place. I’d go neutral, though, in case of a push below this level, at which point I’d wait for a more attractive re-entry point down the line.
Nevertheless, the 200-day moving average may act as short-term support for the IGRA. A bounce off this level could see the index make another into the fierce defence line near 10,250. For this to materialise there would need to be a renewed spurt of bullish momentum in global markets – especially base metals.