Sunday, October 1, 2017

BFI - Banks, Finance and Insurance Index is ahead of the ASI

The All time high of the All Share Index was in Feb of 2011 @ 7825 points, but the Banking,Finance and Insurance sector index known as BFI has broken out of it's 2011 highs and hit the all time high in August of 2015. Therefore it is clear that this Sector is trading ahead of the ASI.
But as we know this sector as well as the Economy of the country is going through a lot of re-positioning, hence a lengthy consolidation can be seen in the price action of the index above 14000 points, with a strong support at 16000 which was an important support between 2010 and 2011 period. This will re-test it's all time high of 19913 points eventually with a short term resistance at 17627 points. At present it is above the support at 16000 as it closed at 16610 points on Friday the 29th ultimo.




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