United Kingdom iShares (EWU) Chart Tells The Story
Dragonfly Capital | Jul 03, 2013 01:41AM ET
Two hundred thirty seven years ago we declared our Independence from British rule. This was a very brave act for a bunch of farmers. To celebrate, you can re-enact sticking it to the British today, but in a much safer way. Short their market. The chart below for the United Kingdom iShares (EWU), tells the story. The price has been floundering in a dead cat move higher over the last two weeks.
With a Shooting Star Monday, confirmed lower Tuesday, it seems to be resolving lower. The 200 day Simple Moving Average (SMA) is now above the price and the Relative Strength Index (RSI) is turning back lower, never having left bearish territory. The moving Average Convergence Divergence indicator (MACD) is diverging on the daily chart, so there is still a bit of doubt in the turn back lower. But you do not need to see the white of their eyes to hit the short button. Just use a stop a few cents above the gap at 18 as a stop.
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 Original post
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