Colombian Markets Show Consolidation After Recent Rally

(MENAFN- The Rio Times) The COLCAP index closed September 9 at 1,867.99 points, declining 0.17% or 3.15 points from the previous session according to Trading View data.

The USD/COP pair remained unchanged at 3,921.5, showing no movement during the trading session as markets consolidated recent gains. The COLCAP's daily chart reveals the index traded between 1,876.31 and 1,864.29, with the closing price near the session lows.

This represents a pause in the index's remarkable year-to-date advance of over 40%, which has made it the best-performing major Latin American market in 2025.

Technical analysis of the daily timeframe shows the index remains well above key moving averages despite the minor pullback.

The RSI maintains readings around 60, suggesting the market avoided overbought conditions while preserving upside momentum. Volume patterns indicate profit-taking rather than institutional selling.



The USD/COP pair's flat performance at 3,921.5 demonstrates currency stability after the peso's significant strengthening trend throughout 2025.

The pair continues trading near annual lows for the dollar, with technical support at 3,900 and resistance emerging around 3,950-4,000.

The 4-hour chart confirms consolidation patterns in both assets. COLCAP shows sideways movement after reaching new five-year highs, while the peso maintains its strong position against the dollar without additional gains.

MACD indicators on shorter timeframes show momentum flattening after extended moves. Global liquidity conditions, represented by the yellow indicator line, continue supporting emerging market assets despite the session's lack of directional movement.

The correlation between liquidity flows and Colombian asset performance remains intact, suggesting underlying support for both currency and equity markets.



Market participants appear to be digesting recent gains rather than initiating new positions. Trading volumes remained moderate, indicating institutional investors are maintaining positions rather than actively accumulating or distributing holdings.

The consolidation phase follows Colombia's inflation data showing 5.10% in August, which keeps monetary policy discussions active ahead of the September 30 central bank meeting. The 9.25% policy rate continues providing attractive carry trade opportunities despite currency stability.

Regional comparison shows Colombia's pause aligns with broader Latin American market behavior, as investors await Federal Reserve decisions and assess emerging market positioning.

The COLCAP's outperformance versus regional peers remains substantial despite the minor daily decline. Technical outlook suggests both markets are in healthy consolidation phases that could precede further advances.

The COLCAP maintains strong chart structure above 1,850 support, while the peso holds gains near multi-year dollar lows around current levels.

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