Smaller indices such as the Austrian Traded Index are often overlooked by investors, impacting negatively on their overall returns. My strong buy recommendation, triggered on the recent break above the defined 2504-2532 resistance band, remains firmly intact and on track towards its upside target.
Today's chart is formatted to better highlight the potency of this recent breakout, displaying price action back to mid-2012 only. You can see clearly that the resistance band defined around the critical G1 level held the index in check throughout 2013, with at least five failed attempts to break through. However, the pull-backs became weaker as 2013 progressed, and previous intimidation has now given way to an air of confidence. This breakout allows me to double the initial 33.33% advance from the low of November 2011 to one of 66.66%. In this way I arrive at a minimum expectation, and my current target, of 2729. This still allows the opportunity to participate in a near-5% upside gain.
Although the chart shows potential for gains beyond 2729, this level remains a useful target at which to book initial profits.
Recommendation: stay long. Target 2729. Stop-losses can be raised by 100 points now, and activated on momentum below 2500.