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Technical Analysis Of Tel Aviv Stock Market Indexes

Analysis of Tel Aviv's stock market indexes. Are they in an uptrend or downtrend? Where are the support and resistance?

April 5 2022 יום שלישי

December 13 2021 יום שני

!שלום

Today we begin by looking at the weekly chart of the TA 125. As you can see, the index has been trading above the weekly 20 MA for a very long time. The weekly 20 MA begin to slope up since November last year.

The index has been trading above the rising weekly 20 MA from November 2021 and it has never closed below the weekly 20 MA.

This gives us a picture of strength and since it is still above the rising weekly 20 MA, I suggest that you should continue to be bullish on the Tel Aviv Index.

On a shorter time frame, the index recently broke above a 2 hour triangle. This is a bullish continuation pattern and look how the index had a 2 hour bullish cross where the 20 MA crosses back above the 50 MA.

It also found support from the rising 2 hour 200 MA. The rising 2 hour 200 MA tells us to maintain a bullish bias. The apex of the triangle can act as support and as long as the index stays above the rising 200 MA and also the apex of the triangle, we should continue to be bullish bias.

December 6 2021 יום שני

שלום

Considering the sell off world wide, Israel's stock market index is doing pretty well. Although it has dropped below its daily 20 MA, it is still above its 50 day moving average.

It was able to find support at the 50 MA previously which coincided with price support.

Right now, the TA 125 is trading in what I call the 20 / 50 zone. The index is within the 20 MA and 50 MA. This is still bullish but I think what the index is doing now is that it is uncertain.

Which is why it is trading sideways a bit. It may be trying to form a triangle pattern in the daily chart. This gives us a good indication of what the index might want to do in the near future.

We can zoom into the 2 hour chart below to see what the index wants to do.

The triangle pattern is a bit clearer when we view it from a 2 hour chart point of view. By connecting the highs and the lows we can draw an uptrend line and a downtrend line.

Together, these 2 trend lines help to form a triangle pattern.

While we do not know which way the triangle will breakout, there is a bias to moving in the direction of the previous move. The previous move for the index was up. It is in an uptrend. So the odds of it breaking higher is better than it breaking lower.

Anyway, we could gain some insight from looking at the S&P 500. If the S&P 500 rebounds back up, this could help the TA 125 to breakout higher.

If the index is able to breakout above the triangle, then it is likely to resume moving higher. On the other hand, if the index breaks below the triangle, then we could be in for some weakness in the index.

Hope this helps!

November 29 2021 יום שני

שלום

The sell off worldwide caused by the new Covid variant fear affected the TA 125 as well.

There was a gap down but the TA 125 immediately found support at the 50 day moving average. The TA 125 is currently at a price support as well. This is an encouraging sign at the moment as the 50 day moving average can act as a support in times of sell off.

Watch the support area that I have highlighted in green above. As long as TA 125 stays above this area then we will probably experience sideways movement or perhaps move back up.

However, we should not ignore a possible further downward move. One reason is the MACD sell signal that happened in the TA 125. In the previous times that we had this signal, the TA 125 suffered some form of correction. The one in June had a bigger impact but the one in late September had a smaller impact.

Another thing to take note is the fact that the TA 125 has broken below an uptrend line. This is another possible sign of weakness.

Which is why we need to look at the 50 MA support area. If TA 125 breaks the 50 MA support area, there could be a deeper correction since the MACD sell signal is still in action.

November 22 2021 יום שני

שלום

The TA 125 is still trading sideways. This is not necessarily a bad thing as a consolidation after a long rise can be good for the index. This may set it up for a breakout higher in the near future.

We just have to use a trend following method to follow the uptrend of the index.

It is still above the rising 20 MA which means for the short term, we should continue to remain bullish. The rising 50 MA and 200 MA also points to a mid term and long term bullish bias.

The 60 min chart could perhaps give us more hint on where the TA 125 wants to go. Right now it may be trying to break above a 60 min downtrend line. If it is able to do so, then this could send the index higher.

The rising 60 min 200 MA still points to a bullish bias in the 60 min chart of the TA 125. 

The TA 90 looks a bit more promising. The index may have formed a higher low and this could set up a daily ascending triangle breakout. The pattern is almost the same as what the S&P 500 is doing.

So if the S&P 500 goes higher, this could have a positive impact on the TA 90.

A breakout above the ascending triangle pattern could send the index higher. The TA 90 is still above the rising daily 20 MA and therefore we should continue to have a bullish bias.

November 16 2021 יום שלישי

Shalom and good day!

The TA 125 is consolidating at a previous high. Just like the US stock market, the Tel Aviv Index is also trading sideways a bit. There is nothing bad about some sideways movement.

The index is still above the rising 20 MA and 50 MA and therefore our bias should always be to the bullish side.

Perhaps some good can come from looking at the 60 min chart of TA 125.

You can see clearly that the index is indeed consolidating at the previous high support. I have marked the support area in green and as long as the index stays above this area, then it is likely to breakout higher.

On the other hand, if the index trades below the green area, then it could correct down to the rising 20 MA in the daily chart. This is not a bad thing as the index can find support at the rising 20 MA. Which makes it a good area to long it.

There is a bullish cross in the 60 min chart above and perhaps this might help to resolve the sideways trading to the bullish side. The last time the index had a bullish cross in the 60 min chart was in early November and the index rose up quite a lot.

November 8 2021 יום שני

The TA 125 continues to move higher and it has almost reached the measured move target that I pointed out sometime ago. The index is still above the rising 20 MA and therefore we should continue to have a bullish bias.

The index is still above the rising 50 MA and therefore we should also continue to have a mid term bullish bias. When the trend is up, it is best to remain bullish.

There might be short term drops and that is normal in an uptrend and if the index corrects short term, then the previous high which I have highlighted in the green could be a potential support area.

Looking at the short term picture, the index has broken above a previous high. That will be a new support area and as long as the TA 125 stays above this area, then it will continue to move higher short term.

On the other hand, if the index drops below the support area, then there could be a small correction.

November 2 2021 יום שלישי

!שלום

Since the last time I did an analysis of TA 125, it has continued to make new highs. I do recommend that you continue to be bullish on TA 125.

The daily chart above shows that the index is still in a very strong uptrend. It is still above the rising 20 MA, rising 50 MA and rising 200 MA. Which is why we should continue to have a bullish bias and if you were to take trades you should look for long candidates.

In the previous analysis, I showed you that the index was making a bull flag and a target north of 1975 is possible. That is the blue arrow on the chart. It is still on its way to that area but it did have some minor correction.

The index corrected to its previous high and bounced back up. We could still use the old bull flag target or we could use a new measured move target which is the black arrow. 

The measured move target is a bit conservative than the bull flag target but as the trend is up, we have a good chance to meet both of the targets. Do continue to be bullish when the trend is up.

The 60 min chart of TA 125 shows us clearly how the index found support at the previous high. It has also broken above the most recent highs and if the index continues to move up, this will be a new area of support.

There could be a possible bullish cross in the 60 min chart and this could help propel the index higher. The last time the index had a bullish cross it actually went up quite a lot.

Hope this helps!

Have a great trading week!

October 22 2021 יום שישי

!שלום

Another trading week has closed and the TA 125 makes new highs. This is good and it looks like more bullish upside is possible. הבורסה עדיין טובה

The first thing that I would like to bring your attention to is the fact that the TA 125 is possibly making a bull flag pattern. This is a bullish continuation pattern and we can actually get a target from it.

We can take the height of the previous move up which is the pole and project it upwards from the consolidation to get a target. I have drawn the target using the blue arrows. That will be slightly below the 2000 area.

Notice the two small horizontal lines I have drawn on the chart? That is the consolidation area. As long as TA 125 stays above the top of this consolidation, then we could be going higher. Do be careful if it drops below the lower horizontal line. That will mean it has broken below the consolidation.

We should continue to be bullish on the index as long as it stays above the rising daily 20 MA. That will be the red line. The blue line is the 50 MA and that shows the mid term strength of the index. Stay bullish on the index mid term as long as it is trading above the 50 MA.

The TA 125 is still in a bull mode. This is where the index is trading above the rising 20 MA, 50 MA and 200 MA. All 3 rising moving average is the perfect condition for the index to move higher. Therefore, we should continue to have a bullish bias.

The weekly chart of TA 125 also shows that the index is still very healthy.

This week, it made another bottoming tail. A bottoming tail in a rising market can be a continuation pattern. What this shows is that the index rejects to go lower and thus it wants to go higher. The last two times it formed a weekly BT, the market moved higher.

So if the index trades above this week's BT, then it is possible for it to move higher.

I like to use the weekly 20 MA as a gauge of weekly bullish strength. Notice how the index has stayed above the 20 MA most of the time since November last year. It slashed through the 20 MA once in July but quickly closed back above it.

Remain bullish in the index as long as it stays above this 20 MA.

Have a great weekend : )

!להתראות

October 14 2021 יום חמישי

שלום

Good day to you my friend. Today I will be covering the Tel Aviv major indexes. It's really great that the TA 125 is hitting an all time high. Israel is indeed a great country. אני אוהב את ישואל   

Been there in 2017 and really love the place and the people. I will definitely go there again in the future.

As you can see, the TA125 is in a nice uptrend. The chart above is the daily chart of the Tel Aviv 125. Recently it broke out of a daily ascending triangle. This is a bullish continuation pattern and you can take the height of the pattern to get a short term target. But since it is in an uptrend you never know how high it can go.

The other possible target that you can have is the measured move target. That is the blue arrow that I have drawn. We can project the last upmove upwards from the bottom of the consolidation to get a target. The target will be quite high but who knows...this is a bull market and it may go there.

The top of the ascending triangle will be the new short term support and as long as any correction stays above that area, then we will see the TA 125 continue to move higher.

There is a strong area of support below. This is where there is a lot of price congestion. Strong support areas are good as they can help the index to bounce up in the event it drops down to there in the future.

But for now, since it is above the rising 20 MA, 50 MA and 200 MA, do stay bullish as the trend is really strong.

The chart above is the 60 min chart of the TA 125. It recently found support at the rising 200 MA. It also had a bullish cross and right now it is still trading above the 60 min 20 MA. Continue to be bullish as long as it stays above the 60 min 20 MA. If it drops below the 60 min 20 MA, then we have to be a bit careful of a correction.

Now let us take a look at the weekly chart of the TA 125. The weekly chart is also in a very strong uptrend. It is trading above the weekly rising 20 MA, 50 MA and 200 MA. Therefore one should continue be bullish on the TA 125. Notice how the index recently traded back above a weekly bottoming tail.

There have been many bottoming tails in the weekly chart of TA 125 and when the index trades above the bottoming tail, the TA 125 tends to move higher. So this time it could be the same again.

There are two areas of support that I have highlighted. One is the smaller green area. Which coincides with the support area I showed you in the daily chart. The other one is the large green area which is the previous high. Once TA 125 went above the previous high, it becomes a support area. This will be a significant strong support area.

The Van Eck Israel ETF above looks like it is breaking out of a weekly type of ascending triangle. The ascending triangle can be a bullish continuation pattern. If the ETF breaks out of the ascending triangle then this will be bullish for Israel's stock market.

Of course one also has to be careful to see that the ETF does not drop below the lower uptrend line. If it does so then it could signal weaknesses which we have to be careful of.

The chart above is the daily chart of the TA 90. It had a triangle breakout and from there it went higher.

It recently had a bullish cross and has broken out of a stubborn resistance area. Resistance once overcome will be a new support and this area could be a strong support area.

The TA 90 is trading above the rising 20 MA, 50 MA and 200 MA, therefore we should continue to maintain a bullish bias on the index.

Hope this helps you. If you have any question don't hesitate to contact me.

Shalom.

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