Bourse indices rally again, but analysts doubt strong rebound

Four sessions of consecutive increases on the Bourse have lifted the main bourse indices above the average of the values they’ve hit in the past 50 days, which could be described as the start of a rebound. Analysts maintain, though, that the low liquidity is not supporting an upward trend at the moment. The 50-day moving average, a technical analysis indicator, has recently signalled SIFs going on a medium-term upward trend, after a several weeks’ period of calmness when indices rather stagnated amid low transactions. The BET-FI index, tracking the trend of the most liquid stock on the market, the SIFs, has recently pierced its 50-day moving average to the upside, which is a buy signal according to some analysts. “(…) This signal confirms a short-term upward movement,” says Mihai Alexa, an analyst with Broker Cluj brokerage. However, analysts do not believe in a solid growth trend, yet. Dragoș Dărăbuț, an analyst with Tradeville, says that for the time being he cannot take into account the signals given by the moving average indicator because of the low liquidity on the market.