PFTS: Short-Term Reversal Likely

Our short-term bullish call on Ukraine's PFTS equity index has played out nicely in recent days. Having previously noted that positive momentum could take the index to 255, the PFTS has since surged higher, closing at 271 on April 6. That said, looking at the relative strength index (RSI), which is a key momentum indicator, the PFTS is clearly in overbought territory. The short-term stochastic chart portrays a similar story, which we take as evidence that the market may be in for a reversal in the near term.

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