How To Trade The Tel Aviv 25 Index

The TA-25 has a 52-week low of 1,383.34 and a 52-week high of 1,728.89. For the day on March 2, 2016, 14 members were up and 11 members were down. Let’s explore the inner mechanics of the TA-25 and extrapolate from the data to forecast likely future price movements. Over the past several days, starting on 23 February, the index shed 0.42%, then lost 0.66% on 24 February, gained 0.45% on 25 February, traded flat on 26 February, gained 0.76% on 29 February gained 0.76% on 1 March, and is up 0.32% on March 2. Therefore, for the past 5 trading days, we have seen a short bull run in the TA-25. The general consensus among analysts is that the short-term prospects of the TA-25 are neutral, based on the trends, and the medium-term and long-term prospects are bearish. The marginal gains in early March should not be perceived as a long-term turnaround; there is simply too much volatility and the index is straddling the red and black on a day-to-day basis.

The above chart reflects the technical analysis of the TA-25, and the short-term, medium-term and long-term support level based at current levels is 1,383.34. The short-term resistance level is at 1,502.60, the medium-term resistance level is at 1,534.59 and the long-term resistance level is at 1,529. The TA-25 ended the month of February in a relatively comfortable position when compared to other global indices, and the short-term bullish trend is continuing with some star performers in the TA-25. Over the course of March 2016 we can expect the TA-25 to perform in a neutral way (flat trading with incremental gains and losses), but as we extend to the mid-term range we’re likely to see bearish sentiment pervading the index. This is true over the long-term too.

The strong performers in the TA-25 on March 2, 2016 include the following companies: