BORSA ISTANBUL - holding ground above SUPPORT 88,000 / 87,000
The Turkish Stock Market Index BIST 100 is trading just above long-term support at around 90,000. At this level the decline from February 2018 at 121,500 has retraced exactly 61.80% of the last upleg of the secular uptrend, which unfolded from December 2016 to February 2018.
A break of this most critical support would indicate that the BIST is breaking down from its long-term top of February 2018. It would mean that the secular uptrend from the 1980s has peaked in February 2018 and a collapse of the Turkish stock market could be seen. For now, the support at 88,000 is there to be tested.
The next support levels would then be placed at 75,000 and 60,000.
The lower chart shows the BIST 100 with the moving averages and the momentum indicators.
The long-term downtrend was signaled in March 2018, when the Index broke below the medium-term and long-term momentum reversals at 111,700.
Now, a medium-term consolidation is forming between the two recent lows at 89,000 / 88,000 and the highs at 101,000 / 99,000.
IT WILL TAKE A RISE IN THE BIST ABOVE 95,500 AND 99,000 TO REDUCE THE RISK OF A MAJOR BREAK BELOW 88,000 / 87,000.