Firmer demand for the First Growths pushed the Liv-ex Fine Wine 50 to a 13-week high yesterday. As can be seen from the chart below, the index fluctuated between 339 and 342 from mid-December until the end of February. After repeatedly bouncing off the *resistance line, the index finally broke through the ceiling early last week before rising to 347 on Monday.
Breakouts are often considered to confirm emerging uptrends, if accompanied by increasing volume. The Liv-ex Fine Wine 50's recent rally has indeed been supported by volume – a sign, it seems, that the market is strengthening.
*A resistance trend line identifies the level at which prices are more likely to experience resistance to growth. A support line, by contrast, identifies the level at which prices will be supported, should the existing trend hold.