I like ripping through various charts of world indices (via their respective ETF’s) once in a while. Malaysia caught my eye today. Below is the long termed chart of EWM. Note the long termed trendline since 2001—and it’s successful test of late. It is below its 10-month (200 day approx..) M.A. As such, I wouldn’t buy just yet. But the near termed chart shows some hope for that buy point to arrive.
As you will note on the weekly chart below, EWM is consolidating with a near termed lid at $8.20. Meanwhile, positive trends on MACD and comparative relative strength vs. the S&P500 are showing. RSI is relatively flat but certainly not heading down—nor is it overbought. Stochastics is overbought—to be expected given its shorter termed timing nature. Moneyflow (bottom pane) is flat for the ETF. Moneyflow momentum (top pane) is improving, though.
A break through $8.20 and the MA would be enticing for this ETF. Put this one on your radar if you are looking at the out-of-favor emerging markets indices. Malaysia looks to be one of the better candidates.
Indonesia (EIDO) looks interesting as well. Thoughts on it Keith?
Big resistance going back to 2011 at around $23–if that breaks, looks pretty interesting!
Looks like weekly close above key level. Would you wait for more strength or sideways consolidation before buying EWM? Any thoughts on fundamentals? Thanks Keith
give it a couple of days…it looks encouraging so far…