EAFE Index Close to Support

02/05/2009 9:02 am EST

Focus: STRATEGIES

Thomas Aspray

, Professional Trader & Analyst

chart

The daily chart of the EAFE Index ETF shows a flag formation, which suggests that the price action since the November lows is just a pause in the downtrend. A break below the support at $35.50-$37 will project a drop to the $20-$24 area. Short-term resistance is at $41, with stronger resistance in the $44-$45 area.

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