Investors in the Tel Aviv Stock Exchange have had a difficult week, to the local difficulties of the continuation of the protests and the government’s rush to complete the legislation was added a financial crisis in the US and European stock exchanges that only added fuel to the fire and sent the indices to sharp price drops in the leading stock indices and a shift to a negative return in all the stock indices since the beginning of the year.
The trading week in Tel Aviv closed with price decreases in the leading indices, Tel Aviv 35 and Tel Aviv 125 fell by 4.1% and 4.39% respectively.
The reporting seasons for 2022 is expected to come to an end this month with the major banks publishing good reports, but this is a thing of the past and the market, as always, is looking ahead against the backdrop of the expected economic challenges. The consumer price index for the month of February was published this week and came out again above market expectations, 0.5% against an expected 0.3%. The rate of inflation has indeed dropped to 5.2%, but the interest rate is expected to continue rising even at the upcoming meeting of the Bank of Israel.
In the US, the crisis of Silicon Valley Bank, which was nationalized the previous weekend, continued to several other regional banks, led by First Republic Bank, which yesterday (Thursday) received a bailout package of 30 billion dollars in deposits from the major banks in the US that decided to support the financial system, whether voluntarily or not, that We will know in the future. In Europe, the second largest Swiss bank, Credit Suisse, went into a tailspin with a collapse in the stock price and an increase in the insurance contracts on the bank that led to a real fear of a collapse and flight of funds, the Swiss central bank realized the magnitude of the hour and injected the bank with a credit line of 54 billion dollars, which calmed the The markets. It is very evident that the rapid increase in interest rates that will take place in 2022 is starting to become a reality and the large losses in government bonds that are used as liquidity cushions for cash and are not registered as investments are beginning to hurt financial institutions against the backdrop of a slowdown in the economic cycle. If we can predict, we are only at the beginning and we expect many more changes to the financial system Worldwide. The interest rate in the US was already expected to rise by another 50 basis points due to the inflation that is not decreasing, a turn was made with an expected increase of only 25 basis points, and even that is not 100% likely. In Europe, on the other hand, the central bank continued with its plans as usual and yesterday the interest rate increased by 50 basis points in accordance with expectations and despite the turmoil in the financial system.
Of the prominent stocks this week in the Tel Aviv 125 index, we mention Ofco, Electra Real Estate and Nova, which rose 16.9%, 8.7% and 4.9% respectively. The shares of Liveperson, Apollo Power and Argo Properties stood out in decline, shedding 52.1%, 30.5% and 15.3% of their value respectively.
Of all the market shares, we mention Shemayim, Medipress Yahs and Tada, which rose 27.4%, 15.1% and 12.2% respectively. On the other hand, the shares of Wind Buzz, Aviv Arlon and Storge Drop lost their value 34.4%, 28.5% and 26% respectively.
In the weekly summary, the Tel Aviv 35 index fell by 4.1%, the Tel Aviv 90 index fell by 5.12%, the banking index fell by 4.48%, the real estate index fell by 5.99%, the oil and gas index fell by 6.35% And the biomed index fell by 3.43%. In the foreign exchange market, the dollar strengthened this week by 2.2% and is now (Friday) trading at a level of NIS 3.6560 per dollar.
The MAOF index – technical forecast – the Tel Aviv 35 index closed the trading week down 4.1% and closed at a level of 1,725.5 points. The week opened with a storm with a price gap falling as the market was still trying to hold itself. Bad news overseas and the continuation of the reality sent the market to price drops, most of which occurred on Sunday with a decreasing price gap and a particularly negative day. The last trading day for the week opened with price drops and another test of the 1,700 point area, which is very close to the annual low, and from there we saw a recovery until the close of trading mainly thanks to headlines from the USA. Technically, the market drops to the 1,700 point area and tests the annual low from the end of the previous month, 1,690 points which is the important support For the short term. A resistance zone exists around 1,760/2 points which is higher on Monday-Wednesday than last week. Technical assessment is a good chance for an upward correction when there is clear support and a clear stop for those who do want to take risks. The atmosphere in the markets is not good but we have already seen that the markets know how to rise , to contain the reality mainly to look forward.
Shekel-Dollar – The dollar weakened slightly this week after last week it returned to its annual highs. From a technical point of view, the decline of the previous week creates a kind of rising low and support around $3.57/8 per shekel. A resistance zone is at the last peak in the strip of 3.67/9 which is a substantial resistance. This movement at the top and the formation of the trough vented technical indicators and any movement in the specified range only opens an upward margin if a breakout comes.
The German DAX index – this week it arrived, signs of breaking and cracks in the strength of the German DAX index, which although recovered on the last trading day (Thursday) in an impressive way, but the last candles and trading cycles increased substantially and marked initial cracks in the index. Technically, the index did indeed break support but held above it the next day. The whole area of 14,900-15,000 constitutes an intermediate area and a continuation below the weekly low can continue the technical correction that began which is only preliminary (it’s not even a correction) certainly for the recent increases that started last October 2,500 points below these levels.
The S&P500 index – the index continued its weakness last week with a new low in the current cycle that the segment produced in early February. The increase yesterday (Thursday) is another “noise” in the downward movement and in fact as long as the index trades in a falling price structure in the short term the last word has not yet been said. Technically, it is important to emphasize the recent low in the index from last week near 3,800 points which is an important level not only in the daily graph but also in the weekly graph and is a support whose breaking can return the index to the annual low. Close resistance in the zone index of 4,020 and 4,075 points.
Bitcoin – Bitcoin decided to take on a life of its own and in very sharp random movements recovered last week from a low of $20,000 per Bitcoin to a new six-month high of over $25,000 per Bitcoin. In my opinion, as long as Bitcoin trades above $24k it is positive in the short term and the decline has released indicators so it can pull more despite the recent rise.
stock analysis
Mitronics (1091065) – The company’s shares are traded in the Tel Aviv Index 90. The stock returned last week to the area of 4,500 points, where it received a ceiling and retreated to 4,000 points on the last trading day, where it still ended in decline, but above this level, which is mainly psychological. Trading strategy for optimists , a positive lock on the next trading day can give an aggressive entry to the stock with a substantial boost at a breakout of 4,500 points. For those who prefer to “play it safe” it is better to wait for a clear breakout and determined buyers who will want to push the paper forward.
ICL (281014) – The company’s shares are traded on the Tel Aviv Index 35. The stock closed the last trading day of the week below the horizontal support zone around 2,450 points. Earlier, it faltered for a period in the price range of 2,760 points from above and 2,450 points from below, which serves as support Horizontal is important. At this point, if you fail to break back above 2,450 points, the assumption is that a new descending target will open around the horizontal support in the area of 2,180 points. To follow
Harel Investments (585018) – The company’s shares are traded on the Tel Aviv Index 35. On the last trading day, the stock recorded a trend reversal above the horizontal support band in the range of 2,920-2,950 points. This is an important support zone and the reversal recorded on the last trading day indicates the possibility of an upward correction beginning The latter around 3,400 points as a near target.
Isracard (1157403) – The company’s shares are traded on the Tel Aviv Index 90. The fight to acquire control of the Isracard credit card company was renewed this week when Menorah Mitvathim submitted an improved offer with a premium of over 30% of the closing price. Technically, the stock is based below the horizontal resistance zone around 1,360 points So its breakout upwards will be a trigger for the continuation of the rising correction with a close target around 1,440 points.From below, the 1,260 points area is a close support.
Phoebe (763011) – The company’s shares are traded on the Tel Aviv Index 90. The company that controls the International Bank. The stock fell this week to the horizontal support zone around 12,740 points and overturned for four trading days above this zone. Technically, the stock has reached an important support zone and there is a possibility of starting an upward correction The last high in the area of 1,400 points. To be followed.
Isramco (232017) – The company’s shares are traded in the Tel Aviv Index 90. The stock fell back to the important horizontal support zone 110.8-112.3 points. So far, buyers have arrived around this zone, but the stock has not been able to develop positive momentum and “sticks” to this zone. Despite this There is a possibility of upward movement when the stop-loss is clear and in the support zone there is a positive chance-risk ratio. From above, the 120 zone is the first resistance and the 125 points is the next resistance.
The full forecast is on the sponsor website, where you can also view the various graphs that accompany the various forecasts, please click here:
Index analysis
stock analysis
This review is intended to help people get a personal view of the sponsor team about the market and about its possible directions, but the analysts cannot be sure of the realization of the scenarios raised as nothing is certain in the capital market at all. Regarding all the shares mentioned above, the above does not contain a recommendation or advice to buy or sell or perform any other action in the shares mentioned, the writer of the lines may own some of the shares in question. Anyone who takes action, does so based on his own judgment.