Stocks: Consolidation To Run Further

Our view that the Turkish ISE-100 equity index was headed for short-term consolidation is playing out (see Key Market Views: Taking Profit on ISE, Selling out of PLN/EUR May 28 in our online service) with the index declining by 2.6% and falling through a key trendline support level since we ended our bullish call on May 28. On a technical basis, the index is now looking particularly weak, having failed to firmly breach a key resistance level at 36,000 and also pushing below its 14-day moving average to at one point trade at 34,065 on June 8. In the immediate term, support at 34,000 will be key with a downside breach through this point setting the index up for further losses back to 32,000.

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