The BIST 100 index continued its downward trend in the week of October 14-18, finishing the week down by 0.93% at 8,793.61 points. The index has remained below its 200-day average for three weeks now. What are the expectations for the coming week?
### The BIST 100 Index Sees Continued Decline
The downward trend that has been ongoing since July continued last week as well. The reactionary rally that began from the lower channel ended with the testing of the 9,070 level. Over the last two weeks, the index tested a price-to-earnings (P/E) ratio of 6.27. As shown in the charts, whenever the P/E ratio exceeded 8 in the last two years, the upward trend in the index came to an end.
### Critical Levels for the BIST 100 Index
After four years, the BIST 100 index has fallen below its 200-day average. In the near future, closures above the 200-day average would be seen as a positive signal from a technical perspective. Conversely, avoiding closures below the major support zone of 8,500-8,600 is important for breaking the negative outlook. For the upcoming week, the 9,050 level will be monitored as resistance, while the 9,400 level, which is the 200-day average, will serve as the main resistance level.
In conclusion, the BIST 100 index continues to trade below its 200-day average. Given the technical indicators and resistance levels, increased volatility in the index is expected in the coming week.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
