TASE TA-35 Index Analysis

1月23日

Lets discuss the interesting trading proposition for the Israel's benchmark index TASE-35 TASE:TA35.

It's the Tel Aviv Stock Exchange's 35 shares composite, weighted average index.

Lets first talk in technical parameters in Daily chart.

After the 8th October'2023, the index touches the lower band of the Bollinger Band. Then it started recovering. On 14th Nov the index makes a positive trend movement by a +ve crossover of EMA lines. Then it steadily moved up. It's in a clear uptrend.

And then the rejection/retracement starts from the top of 1st week of Jan'24.

The Fibonacci retracement's Golden Zone is in 1750-1710 level. This is a perfect place to ride the trend by buying the index. Essentially one can take a Call Options. The Option Chain for TASE is here: https://market.tase.co.il/en/market_data/derivatives/01/major_data/details


Now fundamental reason.

It's true the country is going through a turmoil. And it is widely expected there will be a contraction of its economy for a few quarters. If we look back the history, every time there is a crisis the TASE tanks. But the recovery speed is extremely high. Some examples in the historical price charts of TA-35 tells:

1. After second Intifada (2000-2005). Then look at the index run from 2005 to 2008.
   
2. In 2008 the Lahman Brother's fallout tanks whole world. But the TA-35 did not reacted much.
   
3. Then 2020 Covid. The recovery of the TA-35 was much faster than the among the similar sized (GDP: $500 B) markets.
   

So in such a dip it's always would be good to stay long in this present situation.