"You commented on Turkey last Tuesday. Do you think the iShares ITKY is becoming a buying opportunity and the difference between this iShares and the XU100 is currency exchange. Thanks"

Eoin Treacy's view Thank you for this question which I'm sure will be of interest to other subscribers. The Turkish Lira per 1 British Pound cross rate has been ranging for more than 8 years. The Pound rallied impressively over last few months, breaking the 2-year progression of lower rally highs and increasing potential for a test of the TRY2.50-2.60 area. However, persistent UK relative economic strength would probably be required to sustain a move very much beyond that area.

The iShares MSCI Turkey Index tracks the US$ denominated MSCI Turkey Index rather the Lira denominated ISE National 100 Index (XU100). The Fund has pulled back sharply over the last three months and has returned to an area of potential support near the 200-day MA and the 2007 peak. At Fullermoney, we believe profits are best taken when a market is becoming overextended relative to a trend mean. Reversions towards the mean provide some of the better buying opportunities within consistent medium-term trends and ITKY is at an interesting level. The fund needs to sustain a move above 2800p to break the short-term progression of lower rally highs and confirm support in the current region.