Hong Kong Tests Support
08/19/2010 9:27 am EST
Since the June lows, many of the overseas markets have performed much better than the US markets as Bombay has now broken out to the upside. The iShares Hong Kong ETF (EWH) is up over 17% from the lows and started outperforming the S&P 500 in early June as the long-term downtrend in the RS was overcome. This allowed for a good entry point in early July. The RS is still in a solid uptrend and EWH has pulled back to initial support in the $16 area with next upside targets at $17.20
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.