Argentinas S&P MERVAL Index closed June 19, 2025, at 2,064,098.65, up 0.64% on the day, according to official market data.
This gain snapped a three-day losing streak but left the index 27% below its January record high.The MERVAL remains down 9.43% for the month and 18.53% year-to-date, reflecting persistent volatility and investor caution.
Trading volumes stayed within normal ranges, and the move higher marked the indexs largest one-day gain since June 12.Despite this, the MERVAL still lags regional peers.
Brazilian and Mexican stock markets trade near record levels, benefiting from low valuations and more stable capital flows.Investors continue to see Latin America as a destination for diversification, but Argentinas market remains less liquid and more volatile than its neighbors.
Technical analysis of the MERVALs daily and 4-hour charts reveals a market under pressure.The index trades well below key moving averages, including the 50, 100, and 200-period lines.
This signals a persistent downtrend.
Both charts show the price struggling to break above resistance levels, with the 2,125,000 to 2,225,000 range acting as a ceiling.Argentinas MERVAL Index Gains Ground Amid Technical Weakness and Regional Outperformance.
(Photo Internet reproduction)The MACD indicator remains negative, and its histogram shows only a slight reduction in bearish momentum.
The RSI on both timeframes sits below 40, suggesting the market is oversold but not yet showing clear signs of reversal.Bollinger Bands on the daily chart remain wide, indicating ongoing volatility.
The price hovers near the lower band, which often signals oversold conditions.However, without confirmation from volume or momentum indicators, a sustained recovery looks uncertain.
Support sits near 2,029,000, with resistance at 2,094,000 and 2,125,000.Sector performance diverged sharply.
Energy stocks led gains, rising nearly 5%, while materials and consumer staples fell by 1.5% and 1.8%, respectively.The top individual winners included Telecom Argentina, Central Costanera, Ferrum, Transportadora de Gas del Norte, and Molinos Agro, each posting double-digit percentage gains.On the losing side, Autopistas del Sol and Holcim Argentina registered the steepest declines, reflecting pressure in transportation and construction.
Fundamental drivers remain mixed.Inflation in Argentina has slowed, but macroeconomic uncertainty and the lack of sustained foreign inflows weigh on sentiment.
ETF flows into Argentine equities remain subdued compared to regional peers.The local markets price-to-earnings ratio stands at 12.6, in line with its five-year average but higher than the broader Latin American average.
In summary, the MERVALs modest rebound highlights ongoing technical fragility and underperformance versus regional benchmarks.The market remains oversold, but without a clear catalyst, upside appears limited.
Investors continue to watch for signs of stabilization in both technical and fundamental indicators.