Chile’s IPSA Slides as Technical Signals and Global Uncertainty Weigh on Market

The Santiago stock exchange closed June 17, 2025, with the S&P IPSA index falling 0.90% to 8,091.57, according to official exchange data and TradingView charts. This marks the third consecutive session of losses, as sellers maintained control.

The index also broke below the key 8,165 support level. The day’s decline followed a 0.54% drop the previous session, confirming a downward trend that has developed since the index peaked above 8,320 earlier this month.

The technical picture reveals persistent weakness. On the 4-hour chart, the IPSA failed to reclaim the 8,200 resistance zone and closed near the lower Bollinger Band. The Relative Strength Index (RSI) dropped to 42.83, signaling weakening momentum and approaching oversold territory.

The Moving Average Convergence Divergence (MACD) histogram turned negative, and the signal line crossed below the MACD line, confirming a loss of short-term bullish momentum.

Bollinger Bands narrowed, reflecting compressed volatility and a lack of buying conviction. The daily chart reinforced this view, with the index closing well below the 8,205 and 8,240 resistance levels.

The RSI slipped to 49.09, indicating neutrality but trending lower, while the MACD histogram stayed negative. The IPSA now sits just above the 50-day moving average, a critical technical level.

If this support fails, the next area of interest lies near 8,012, with further downside risk if sellers persist. Market activity showed moderate volume, with Banco de Chile and Falabella among the most traded stocks.

The top gainers included Hites S.A., up 8%, ABC SA, up 4.12%, and Paz Corp, up 2.40%. On the losing side, Socovesa dropped 3.14% and Plaza fell 2.23%. These moves reflected sector-specific news and earnings, as well as broader risk-off sentiment.

Benchmarking against regional peers, the IPSA underperformed Brazil’s Bovespa, which posted modest gains, and Colombia’s COLCAP, which rose 0.43%. U.S. and European markets rebounded from last week’s selloff, but Chilean equities lagged as local technicals weighed.

The Chilean market’s fundamentals remain stable, with a price-to-earnings ratio near 10x and inflation contained at 4.5%. The Central Bank of Chile held its benchmark rate steady at 5% as expected, citing persistent inflation above target.

Despite relatively strong fundamentals and low country risk, Chilean equities saw limited inflows as investors favored safer or higher-yielding markets. The IPSA’s decline reflected a mix of technical weakness, sector rotation, and global caution.

The charts now show a market at a crossroads, with support levels under threat and momentum indicators flashing warning signs. Investors will watch for a decisive move in the coming days as the balance between fundamentals and technicals determines the next direction.

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