Stock Exchange signals long-term rebound: BET index exceeds 200-day average

The BET index (of the top 10 companies on the Bucharest Stock Exchange) has exceeded its moving average of the last 200 sessions, this being traditionally a sign of a trend change, say experts in technical analysis. According to them, the technical analysis has lately signalled the fact that the Stock Exchange could see its decline reversed and, furthermore, record a long-term upward trend. The BET index has in the last two sessions climbed above the 200-day moving average, one of the most important technical analysis indicators, after it gained 80% in the last three months. Only three and a half months ago, the value of the BET index was almost 60% lower than the moving average, while now it is 5-6% above the average. “To me the 200-day moving average indicator is the most important indicator that can signal the end of a crisis. When the index crosses the average, big institutional players generally see it as a signal to buy and enter the market. However, they are also the first to exit if the signal fails to confirm and the index does not remain above the average for several weeks’ time,” says Adrian Lupsan, deputy general manager of Intercapital Invest. He believes that if the value of the BET index remained above the 200-day moving average for a two to four-month period, this would amount to a long-term rebound of all stock exchanges.