- The Tel Aviv 35 is rebounding from a pullback to 3,300 shekels, with resistance near 3,500 and continued strength supported by solid performance in pharma and banking.
- Short-term dips still appear to offer buying opportunities while the broader uptrend remains intact.
The Tel Aviv stock exchange has been on fire for some time. And of course, the top 35 stocks have been a major influence on this, as pharmaceutical banking, et cetera, has done fairly well. Currently, we find ourselves in the midst of trying to recover from a pullback that saw the 3,300 shekels level tested. The market looks as if it has a bit of a barrier at the 3,500 shekels level. So, we'll just have to wait and see whether or not we stay in this range or if we continue to go higher.
Top Forex Brokers
We initially pulled back only to turn around and show signs of strength. This is a market where a short-term pullback opens up an opportunity. This is a market that I think, given enough time, will continue the overall trend, but maybe we just need to digest some of these massive gains for a while. This index basically mimics the NASDAQ 100. If you look at it, you overlay a chart, and therefore, it is going to move in a lot of the same ways with the pharmaceutical and biotech-related companies. It makes sense if you think about it.
Correlations and Key Support Zones
Questions about stability in the area have been resolved. So that, of course, helps Tel Aviv as well, and it is rapidly becoming a destination where traders are putting money to work. If we were to break down below the 3,300 shekels level, then it opens up the possibility of testing the 50-day EMA at 3,250 shekels, but we'll just have to wait and see whether or not that happens. Really, at this point in time, it's not until we break down below 3,000 shekels that I think the index is in trouble.
It looks like a market that has had a nice little correction, and it's ready to rise. Pay attention to New York; they generally set the tone. So, if we see strength in New York on Friday, then maybe it rolls over into Tel Aviv in the following week. You also want to pay attention to Tokyo, London, et cetera. But New York seems to be the one that leads the rest, and we'll just go from there. But at this point, it looks like a buy on the dip index.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.