Home > Financial Ponzi, investing, stock charts, Stock Market, technical analysis > What to make of Emerging Markets?

What to make of Emerging Markets?

The Emerging Markets ETF (EEM) is a very interesting chart.  Is it a strong buy or a strong sell?  It seems both cases can be made.

The weekly chart posted a huge bullish wick last week. That is often a great reversal pattern that indicates the bottom of a selloff.

2015-07-17-EEM-W_CHARTS

But the daily chart paints a different picture. It experienced a massive breakdown and has now climbed back to the former support. This would typically be a good spot to short.

2015-07-17-EEM-D_CHARTS

So which is it? Strong buy or strong sell?  I don’t know, but it’s a pretty interesting situation.

Another very interesting, somewhat perplexing international chart comes from Hong Kong (EWH). It looked like a serious breakout earlier this year, then hit resistance from a decade ago.  It pulled back to support and has created a very bullish wick on the weekly chart. I suspect this is a bullish setup. At the very least, it looks interesting.

2015-07-16-EWH_CHARTS

As an unrelated aside, Netflix (NFLX) rallied 15% after earnings.  Breakout?  Maybe not so fast.  It looks to be coming up on a 20 year old line of resistance.

2015-07-17-NFLX_CHARTS

Happy trading.

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