BEL 20 continues move higher

Price at time of writing – 3154.

Belgium’s benchmark index, the BEL 20, was one of the first eurozone share markets to show signs of a major breakout last year.

Following in Spain’s footsteps, the BEL 20 broke clear of resistance in August last year, an event which triggered my buy note with an initial target at the G2 level of 2905. Recent developments suggest the index has again broken free, and my recommendation is upgraded to a buy.

Although the key trigger was that of February’s break above 2905, confirmation of a move to a new and higher trading range came following recent momentum above 3050. This allows me to double the initial 33.33% rise originating from the July 2009 low to one of 66.66%, taking the index to a minimum target at 3253. This level is further supported by a line representing a 33.33% rise from the low in June 2013. Ultimately, there is a case for the BEL 20 to trade as high as 3789, allowing for a 20% gain (from the current level) to be realised by more patient investors. A move to this ultimate target would complete a 100% rise from the important low in November 2011.

The Belgian index is easily tradable as a CFD or through an Exchange Traded Fund (ETF).

Recommendation: buy. Initial trading target 3253. More patient investors should look to an ultimate target at 3789. Stop-losses can be activated on momentum below 3050.

Belgium 20 chart

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