With all the doom and gloom in the euro zone, China and in
general mixed economic data out both developed and emerging
markets, we can find a bright spot in India's equities and
[caption id="attachment_72331" align="alignright" width="220"
caption="India's National Stock Exchange, known as the NIFTY"]
India's President Pranab Mukherjee suggested that India's
markets are back on track to a healthy and steady growing economy
at the 'India Chem 2012".
President Mukherjee said during his speech that we are
"witnessing a rebound" in the Indian economy.
He went on to point out that India's manufacturing policies are
paying off with an increase of 16-25 percent in GDP by the year
2025. He also indicated that by 2022 India could create an
impressive 100 million additional jobs.
To confirm President Mukherjee comments, just look at the
daily chart of Wisdom Tree India Earnings Fund (EPI, quote) a ETF
that seeks to track Indian's earnings index.
After consolidating all summer long the EPI began to move higher
in September and is now trading above the consolidation, a very
Using the Fibonacci tool from the EPI's low we find a 61.8%
target just above the 52 week high of $21.59. The Fibonacci's
are lining up very well with the 27% extension level, a common
resting place for price action before continuing higher that falls
right on top of the next resistance level. This is key as we
know price many times will rest or consolidate to gain momentum
before breaking through resistance and support levels.
The 61.8 extension as mentioned is just above the 52 week high
or second level resistance price will need to break through. All