The performance of the TA-25 since the conflict with Hizbullah began in mid-July has been nothing short of "erratic," say traders who are trying to decipher its next move.
"The market has been a good performer in the long-term," commented Oli Greenspan, London-based trader at Hamilton Court Capital. "However the erratic performance of recent weeks [leaves the next move unclear].
From a technical point of view, Israel's benchmark index had been mired in a downtrend, which began in mid-May - two months before the war broke out. The subsequent falls over the first two days of the war on July 12 and 13 only confirmed the negative sentiment for the market, but its recent revival, pushing back to pre-war levels, has led many to revise their stance.
The index rose 2.2 percent to 820.09 on Thursday, the highest close since the violence started.
"If we saw a push through 825, we would turn buyers of the index," said Greenspan, noting, however, that the market still appeared "range-bound" in the 800-825 area.
Avi Weinreb of Clal Finance Batucha shared this view.
"While the TA-25 has had a decent rally lately, I don't see it climbing much further any time soon - if anything, it would appear to be heading sideways for now."
The market has consolidated around the 800 mark during August, which should provide some degree of support if the index slipped from its current levels, but there appears to be no technical reason to support a large rally from here.
Technical analysis is the study of trading based on previous performance, focusing exclusively on price movements rather than the fundamentals of the index/currency involved.