The Russian stock market: Investors are tired of buying

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The Russian stock market on Wednesday is corrected, but the decline now does not seem excessive or overly emotional. Most likely, investors are just tired of buying and known up to this moment bullish drivers have already been priced in and factored into the prices. Estimates of “Alpari-Broker”, index Mosberg forms in the last days “outset” borders 2415-2450 points, its boundary is quite sufficient to keep the ruble indicator in peace, until the founding of new movements.
RTS index has fallen more markedly, and seeks to support at 1160 points. If this level is broken, bears will target the area of 1150 points.
It is clear that the market is fairly overbought and needs at least a technical pullback in order to later return to constructive vibrations.
The shares of “Magnet” on Wednesday sharply weaken. In the last days it was the active phase of redemption of securities of the company under the previously announced strategy, and while working here management, the market remains only to follow the trend. Technically, the shares may consolidate in the region of 4,000 rubles., then the value will have the overall market trend.
Now if you watch the evening news: today closed a two-day meeting of the U.S. Federal reserve, which with high probability will raise rates by 25 basis points. But players are not interested in it: the focus will be on the press conference, Governor Jerome Powell, who needs to provide guidance for future monetary steps, as well as assessment of the us economy. The bolder of Powell, the more substantive guidance will have the market, the better for the dollar.
The evening ruble pair almost stopped moving. The greenback closes the day within 65,80-66,35, the Euro in the range 77,25-77,55 RUB All the American news we should consider the prices until tomorrow morning.
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Anna Bodrova,
Senior analyst,
Alpari