The Micex, one of the key Russian stock gauges, has been rallying strong over the last few weeks and is now at its highest point since May — but there is still a lot of ground left to recover.
The Micex has ended in the black 9 out of the last 11 sessions, surging a full 7% off its intraday low of 1,601 on June 23.
This is now the longest winning streak for the Micex since December and also reflects the Moscow market’s process of consolidating after the 15% plunge we saw in late April into May.
It now looks like the Micex has set a higher low and a higher high here. With the relative strength index (RSI) reading a strong 70 on a 100-point scale, we could see more upside left in this run.
Key level of resistance to watch is 1,740, roughly 2% up from here. Even that would bring us to a point 5% off the highs of early April, when Russia was rallying with the rest of the emerging markets and this index was peaking just north of 1,860.
While the Russian ETFs do not exactly replicate the Micex, U.S. traders can still get a taste of this story via old favorites like RSX (quote) or RBL (quote):