A Big Spot For Emerging Markets
Dragonfly Capital | Jan 17, 2019 08:19AM ET
Emerging Markets) had a tough 2018. They started to fall in January along with the US Equity markets, but unlike the latter, they did not get a mid year rally. They just kept going lower. By June they had fallen below long term support levels. A retest of that support area in July failed and they continued to the downside.
Since that retest Emerging Markets have continued lower and with falling trend resistance. There have been times when they seemed ready to reverse and move higher, but each time they failed at this resistance. Currently Emerging Markets are at resistance again. What will happen?
The latest touch at resistance comes after a second stop at what may be building support. The December low was a retest of the October low, and technically a higher low. That gives this test of resistance added importance. A break above it is the start of a reversal. a continued move above the November 30 high confirms a double bottom and adds weight to the reversal story.
They are already exhibiting strong momentum with the RSI at the highest level since the end of January and pushing back into the bullish zone. The MACD is similar, with a nearly 52 week high and now positive. There is no race to the upside yet, but it is worth keeping an eye on Emerging Markets in the short term.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.