At War: Market Vector's Russia
InTheMoney Stocks | May 13, 2014 01:49PM ET
Looking at the chart above, we can clearly see that RSX broke below a major trendline on the weekly chart. But what does this mean and why is it so important? It means that while the markets continue to be indifferent to this crisis, a major war is not out of the question. This chart has been moving sideways for about ten weeks after confirming below the trendline. This indicates that a major break down is possible.
And it can take place at any point now.
Unless the RSX can climb back above the $24.50 level, the chart will remain in an extremely weak technical position. If the RSX was to break down lower, the next major levels of support are; $18.05 and $10.31. The border line in the charts has already been crossed; bulls and bears are already at war. As traders all we care about is whether the weekly trend line can be recaptured. If it fails to do so and breaks down, it will be the result of a major escalation and possible war between Russia and Ukraine.
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