Monday, April 23, 2012

BRIC to the rescue?

When you looked at the 4 countries that make up the BRIC- Brazil, Russia, India & China- you will find that they are in different stages of recovery after sliding for the most part of 2011. Brazil's BVSP & India' BSE are the stronger indices as both have broken above their intermediate downtrend line as well as staying above its 200-day SMA line. China's SSEC & Russia's RSTI are a mixed bag, with SSEC having broken above its intermediate downtrend line but still trading below the 200-day SMA line while RTSI is above its 200-day SMA line but still trading below its downtrend line.



Chart 1: BVSP's daily chart as at April 20, 2012 (Source: Stockcharts)



Chart 2: RTSI's daily chart as at April 20, 2012 (Source: Stockcharts)


Chart 3: BSE's daily chart as at April 20, 2012 (Source: Stockcharts)


Chart 4: SSEC's daily chart as at April 20, 2012 (Source: Stockcharts)

With signs that the Chinese economy may avoid a hard-landing, BRIC could provide the growth to lift the global economy out of its current doldrum.

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