BRIC Theme for year 2019 - Russian Trading System (RTS) Index Chart Analysis

Russian Trading System (RTS) Index is part of BRIC emerging market theme that has seen a sell off rout in year 2018 on the backdrop of rising US dollar, rising Treasury yields and emerging markets BRIC and VISTA had their currencies weakening, and stock indexes steep correction.

Emerging markets theme BRIC comprising Brazil, Russia, India and China while Frontier markets VISTA theme comprising Vietnam, Indonesia, South Africa, Turkey and Argentina.

With post G20 meeting hosted by Argentina concluded on 30 November to 1 December, it was a successful meeting between USA and China where they had implement trade war tariff truce for 90 days.

https://www.msn.com/en-ca/news/world/a-look-at-what-happened-at-the-g-20-summit-in-argentina/ar-BBQo4La?li=AAgfIYZ

Let us take a look at the charts of BRIC theme attached is Russian Trading System Index (RTS).

We are still at 50th percentile of the bullish market which had many more years to go. Charts display bullish strength where Russian Trading System (RTS) Index had seen a minor market correction to 1039 points in year 2018 low after hitting 1339 points high in year 2018, now trading at 1116 points after hitting recent Jan 2018 high of 1339 points, 22.4% correction from recent high.

With the recent emerging markets technical correction of over 20% enter into a technical bear market, lots of financial analyst expert are calling for a full blown financial crisis bear market to take place in year 2019.

So are we going to see a financial crisis taking place soon?

Russian Trading System (RTS) Index Monthly Chart Historical 14 Dec 2018

Russian Trading System (RTS) Index Monthly Chart Historical 14 Dec 2018 with Technical Analysis

Based on above Chart Technical Analysis, all time high in year 2008 is 2498 points, fair value is derived at 1249 points, using simple mathematics formula 1/2 theory following Asian Investment Master Mr. Hu Liyang, Leon's teaching. Undervalue is derived at 624 points using 1/2 theory again. Lets take a look at the chart back test this 1/2 theory by Asian Investment Master Mr. Hu Liyang, Leon, price find a bottom at 492 points in year 2009 after breaching 624 points undervalue zone for extreme bear market sentiments to be the pivot point of trend reversal. In year 2016 it breach 624 points undervalue zone again to trade at 607 points low. Since hitting 607 points low,  it rallied up to 1339 points in Jan 2018, where the fair value zone is 1249 points, resistance point and see a retracement to current 1116 points amid market violatility. Recent low 1039 points in Aug/Sept is a
% correction seen back test the downtrend line in blue color that connect all the lower high peaks, resistance turn support line. green color line refers to classical support line usually connects all the peaks and troughs range between 492 points to 600 points. blue color lines suggest bullish chart pattern symmetric triangle had price broken out, back test to find support. A target of 3000 points is expected for Russian Trading System (RTS) index.

iShares MSCI Russia Capped ETF 14 Dec 2018

iShares MSCI Russia Capped ETF 14 Dec 2018 with Technical Analysis

Above ETF chart Technical Analysis suggest a bullish chart formation of a big rounding bottom in green color drawn line. Double blue color lines refers to classical support line that connects all the peaks and troughs, usually where the strong support is couple with the green line as additional support. A target of  92 price is expected using y axis difference of 38 price to be added to the all time high of 54 price which a wavelength is formed.

Vaneck Vectors Russia ETF 12 Dec 2018

Vaneck Vectors Russia ETF 12 Dec 2018 with Technical Analysis

Above ETF chart Technical Analysis suggest a bullish chart formation a potential big ascending triangle refers to upper green color line and red color line, an uptrending line that connect all higher low as support. An observation made is price already broke out of downtrending lines known to be price channel drawn in upper and lower blue color lines with median orange color lines.price had found a support at lower green color line refers to classical support that connect all the peaks and troughs. An imaginary big rounding bottom line is observed as well. A target of  between 50 to 60 price is expected using y axis difference of 25 price to be added to the all time high of 35 price which a wavelength is formed.

Direxion Daily Russia Bear 3X shares 14.12.18

Direxion Daily Russia Bear 3X shares 14.12.18 with Technical Analysis

Based on the charts, a downtrend price channel lines are drawn using upper and lower blue color lines with the median in green color line. price is consolidating in a range suggest selling pressure is over. it coincides with the above charts that rally in emerging markets are approaching amidst current 50th percentile bullish market environment.





Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.