Emerging Markets at Resistance
10/05/2010 9:39 am EST
The weekly chart of the iShares MSCI Emerging Markets ETF (EEM) shows that the major trend line resistance and the prior highs at $42.60 are now being challenged. The 50-day moving average (MA) dropped below the 200-day MA in late June, but this negative signal was reversed on September 10. Once the April highs at $43.84 are overcome, there is resistance at $46-$47 and then at $50-$52. Volume on the rally has been low.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.