Mexico gives a sign of lifeAfter staying over a month at the lowest levels of the year, almost 10% down for the year, but finally the market has been able to recover. But the fundamental data that has been pushing this move up is quite bizarre. Perhaps we are out of the water and I hope so as some other positions in Mexican stocks will be affected by the performance of this recovery. So far the recent move looks promising as it has clearly broken above the 25MA which will now serve as support as price attempts to climb into a higher deviation. Successfully breaking above the 200MA would place the index out of trouble for the coming time. Let's hope for the best and If the USA rides into euphoria, perhaps Mexico can ride along as well.
Additional to the analysis here, I give a great visual description of what my indicators tell me and how I read them. The same is true for the short term deviation, which helps me see the finer movements of price action.
ME trade ideas
Is the mexican index in danger?Even with great companies conforming this index, it's impossible to ignore the effect that Claudia Sheinbaum's victory had over the markets. It's shocking to see the pessimism of the markets after her victory. Unfortunately, this has now created an infliction point in the BMV:ME index. With no recent clear support, it could be possible for price to drop quite a bit more, opening great buying opportunities.
However, if price does not begin to reverse this trend soon, it's possible that we will test lower lows.
Mexican IPC BMV - Ascending Triangle1. Uptrend coming since 2020.
2. Consolidation during health emergency,
3. Rising economy beacuase of opening borders and presencial labor.
4. Limit roof standing because of Fed tax rate increase.
%. Waiting for trend continuation completing pattern.
Fundamentals
International relationships
National economy-labor increasing
United States sponsorship on international agreement
Looking For a Discount Mexican IndexAs interest rates rise in méxico, stockprices should be negatively afected termorarly. Meanwhile the market ajusts to this change. Although this shoudn't bring the Mexican economy to a halt, it's still offers the posibility of price moving lower, allowing for a purchase at a discounted price. This is a long term investment, hoping to get in at a lower value in order to increse short term returns, while the plan is to keep holding the index indefenetly.
Indice Bolsa MexicanaSin ninguna catalizador al alza en la bolsa mexicana, continuas preocupaciones de consumo interno derivado de la contingencia sanitaria por el Covid-19, se percibe un escenario de continuidad a la baja para el mercado. Posibles rebotes deberán de ser encontrados con resistencia de venta por parte del mercado.
Bullish divergence, falling wedge and oversoldLet see if this can change a bit just to let breath the mexican stock market, I suppose the government have to announce some tax reduction or some financial aid to the private sector at some point, so lets see if they can say something useful before another weekly candle closes in red