Bank Hapoalim and Bank Leumi continue to be optimistic about the Tel Aviv Stock Exchange (TASE) in their weekly macroeconomic surveys, although they both reiterate their reservations of recent weeks. The Tel Aviv 25 Index opened this week at 1,306 points, after rising 0.4% last week, to an all-time high.
Bank Leumi says, "In the short term, the positive sentiment will likely continue, given the soundness of the Israeli economy. The lack of alternative investments also supports an end-of-year rally." The bank cautions, however, "Overseas developments could have a material effect on trading trends", referring to investors' volatility and nervousness at these levels.
"Globes" technical analyst Ziv Segal says, "Many people ask me about the importance of the movement of the Tel Aviv 25 Index around 1,300 points. As far as my technical analysis of the index is concerned, there is no importance. What is important is the support level at 1,280-1,285 points and the 1,350-point target. This target is based on expansion ratios calculated in accordance with the Fibonacci sequence, and is designed for new peak/nadir levels for which there is no precedent in the scenarios. At the end Thursday's trading, it seems that the Tel Aviv 25 Index's rally toward 1,350 points ought to continue. In the short term, the 1,295-point support level will also be tested."
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2010
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