Ukrainian stock index more or less follows the major world indexes. First of all, this concerns S&P500 in American trading session and DAX in European one. So, what should we expect from the index?
Technically, the index is within a wide rising channel, which is at the point of being broken upwards.
According to the Analytics Team of Commodity Trading Department, there are no fundamental reasons for growth. Growing may happen one quantitative easing is expected in eurozone. Governmental decisions in this reference may be taken one of these days. In other words, growth is possible due to news followed by a pullback, as PMI is weak.
The chart of Ukrainian stock index looks the following way:
The picture shows that technically Ukrainian index has remained within a rising channel for the last week. Moreover, if world stock indexes undergo upward breakout, Ukrainian index will do the same.
Speaking about the structure to be built in order to earn when asset rises and not to lose much when it falls if news are non-favourable, Commodity Trading Department suggests ratio-spread:
The picture shows that if the price falls, we will have a fixed loss of UAH 50. Moreover, we can roll depreciated short options and bring the position into breakeven point. In case of growth we receive considerable profit in rather wide range.
