DESIF5_MAR futures at Sibiu Stock Exchange

At Sibiu Stock Exchange is the only place were you can bet the market will fall and gain from it in Romanian markets (it is called going SHORT, or opening SHORT positions). Here you're not buying or selling shares, instead you are buying or selling contracts of 1.000 shares of the underlying financial instrument. This is also called a derivative.
The most popular futures contract is the one that follows the movement of SIF Oltenia listed at Bucharest Stock Exchange (SIF5) and has 4 expiry dates March, June, September and December. The closest expiry date being the one that gets transacted the most.
Here is the chart, at the bottom of the chart you will see with brown the daily volume and the blue line being the number of open contracts.

In Technical Analysis of futures contracts, if the price rise but is not followed by the volume and a gain in the Open Contracts positions, it is called a divergence, meaning the players who had long position (gaining from the markets going up, the opposite of short position) are happy to close their contracts at this levels and not open other ones. They more are on the wait and see attitude, that's why also the volume is low.


The price chart looks like it formed an Inverse Head & Shoulder with a price target around 1.65 or the upper line of the ascending channel around 1.51. I am more in favor for a pullback to retest the neckline of the inverse Head&Shoulder around 1.26 followed by a continued uptrend towards new highs.


Have a great week-end everybody!


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