Emerging Markets ETF Could Explode

By Sam Collins,

Shutterstock photo


iShares MSCI Emerging Markets Index Fund ( EEM ) -- This exchange-traded fund ( ETF ), which is designed to measure equity market performance in the global emerging markets, contains a number of the technical characteristics that indicate this investment will likely be successful.   

  EEM Chart

Chart Legend  

The major trend, which had been supported by the 50-day moving average, was broken in late January. Since then, EEM found support at its 200-day moving average and picked up significant accumulation starting in February. 

In late March, this ETF issued a trading buy signal when the 20-day moving average crossed above the 50-day. And on Thursday, EEM broke out violently on high volume leaving a small gap behind. 

If the breakout is genuine, the gap may not be closed, and the fund could quickly run to $48 to $50, which is our target for a short-term trade.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Investing Ideas
Referenced Stocks: EEM , ETF

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Sam Collins

Sam Collins

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