ISEQ Overall pushes close to target

Price at time of writing – 4805.

Today I follow up last year’s note of 17 September, in which I initiated a strong buy on Ireland’s ISEQ Overall index.

In that update I suggested buying the index at 4277, with an ultimate target of 5014. I also highlighted that some minor resistance could be expected along the way, in a band defined as 4730-4768.

January saw the ISEQ Overall achieve this first line of minor resistance, peaking at 4869 before pulling back below 4730. Encouragingly, in the last few sessions the index has again broken above 4768, suggesting we are largely through this band of hesitation and back on trend towards 5014.

However, despite this positive development it must be remembered that most of the 17% upside we noted in September is now behind us. The remaining upside to my 5014 target is just 4.35%. Those that took my initial advice should stay long, but only nimble traders should look to be involved in the last few percentage points.

Recommendation: stay long. Target 5014. Stop-losses may be activated on weakness below 4700.

ISEQ Overall index chart

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