Morning Thread

Gator's Chart of the Day: RSX

RSX: Weekly Chart

RSX: Daily Chart

The Russian elections are over and Vladamir Putin won.  No surprise there but some uncertainty has been removed even if it was only a tiny bit.  I do not claim to be "the axe" on Russia and I don't play in a band and I rarely wear a tie and I never wear a pink shirt, but I can see what's happening on these charts.

The weekly chart shows a fairly well defined W pattern and price has now cleared the vertex just above 32.  Volume has been above the 50 period moving average.  Looking at the daily chart (same "W" from the weekly) we see the same characteristics and the 200 day sma has now been cleared.  A test of the vertex level would also correspond to a test of the 200 day sma and I would expect to see strong support there.

Commodity inflation has been in the news and Russia has a great plenty of natural resources.  They are the number 1 producer of oil accounting for 12% of world production (Saudi Arabia is number 2 with 10%) and the number 1 producer of natural gas (19%) and number six in gold production (6.9%.)  The RSX could be a nice addition to one's portfolio.

Production figures are 2010 estimates.  Source: Wikipedia