EEM may retest base of WEDGE since 2007@37; see Buy & Sell zones
EEM Emerging Mkt formed a big Violet wedge since the 2007-2008 crash. It currently gapped down & broke 40, a 0.618 level. If it does not reclaim 40 in the next few days, then It will go down to
37 to retest the lower edge of this wedge. 37 is also a 1.618 retracement of the latest rally.
See the 3 zones in the chart. Red is the sell zone. Yellow is the neutral zone & green is the buy zone.
The bottom may be near for EEM specially if inflation, the DXY dollar index & TNX the 10-yr yield will peak out soon, pushing equities & risk assets higher. Rise in commodities is also good for EEM countries.
Not trading advice
37 to retest the lower edge of this wedge. 37 is also a 1.618 retracement of the latest rally.
See the 3 zones in the chart. Red is the sell zone. Yellow is the neutral zone & green is the buy zone.
The bottom may be near for EEM specially if inflation, the DXY dollar index & TNX the 10-yr yield will peak out soon, pushing equities & risk assets higher. Rise in commodities is also good for EEM countries.
Not trading advice