Russian stocks can exhibit unclear dynamics on geopolitical risks

MOSCOW, Jan 17 (PRIME) -- The Russian stock market’s dynamics will be significantly pressured by geopolitical risks on Monday, although the market looks technically overbought, analysts said.

“The blue chips are mainly falling during the morning trading session on the Russian stock market, although they are technically overbought. It is still unclear what lies behind Russia’s tough rhetoric about the U.S. and NATO and what is to follow, so it is early to speak about any medium-term purchases,” Alor Broker analyst Alexei Antonov said.

The market is ready for a technical rebound, but we can see it testing the 3,500 support line of the MOEX Russia Index before, he added.

Antonov also said that oil prices, which are currently trying to break through the U.S. $85–86 per barrel resistance lines, can prevent local stocks from a deeper fall.

Director of BCS Broker’s stock market experts department Vasily Karpunin said that the external background looks mixed with the main U.S. indices futures slightly rising and Asian market demonstrating uncertain dynamics.

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