The correction of the huge increases is getting closer? WIG close to the all-time record

The WIG index has only 3% left to reach the highest level in history, taking into account the closing of the session on November 6, 2023. The record was set on November 8, 2021. Since then, the WIG index has had a real rollercoaster. By October 2022, the prices fell by almost 40%, and then in just over a year they rose by 62%. Yes, we are talking about the main index of the Warsaw Stock Exchange, which is characterized by such enormous variability and for whom the risk of the so-called the wrong moment to enter the market is very high. Unlike the USA, where the bull market is interrupted by sudden bear markets and then new peaks usually appear, in Poland the market characteristics are completely different.

Time for a correction before attacking the top?

Although there seems to be so little left to establish a new peak at Książęca, looking at WIG, for now the market may choose the correction scenario. Thus, the Warsaw Stock Exchange, today follows Asia and contracts in the USA may go back, and we will have to wait for the next record.

WIG20 – 2200 is a barrier for now

Also looking at Wig20 we will see that the index is currently struggling with a round level of 2200 points, where the market had already had trouble coping with it. We're talking about July 2023, where the earlier bullish rally ended, leading to a pullback of almost 15%.

Potential support for correction

The current increase on WIG20 has reached 18%, and for a possible correction, the nearest potential supports may be in the area of ​​2170 and 2140 points. Further possible support may be at 2080 points. Investors may also remember an electoral loophole, the upper limit of which has already been tested and defended, but the lower limit will still be in play for the future.

Meanwhile, from above, potential Resistance levels may be around 2280 points and 2350 points (based on WIG20 futures contracts).