Global stocks have lagged recently because of weakness in China, but a handful of countries are still advancing. One of them is Russia.
The VanEck Russia ETF rallied about 50 percent between November and June. It’s consolidated since then, while making a series of higher lows. The most recent low around $29 was noteworthy because it was near previous highs from late June, early July and mid-August. Has old resistance become new support? Additionally, the bounce is taking place near the 50-day simple moving average (SMA).
RSX is potentially interesting because of the macro environment. Russia’s economy enjoyed its strongest growth since 2000 in the second quarter. Its central bank has also been raising interest rates, which has let the ruble perform much better than other commodity currencies like the Australian dollar. Speaking of commodities, Russia enjoys a potentially strong position with Europe starving for natural gas this winter and oil still trending upward.
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The VanEck Russia ETF rallied about 50 percent between November and June. It’s consolidated since then, while making a series of higher lows. The most recent low around $29 was noteworthy because it was near previous highs from late June, early July and mid-August. Has old resistance become new support? Additionally, the bounce is taking place near the 50-day simple moving average (SMA).
RSX is potentially interesting because of the macro environment. Russia’s economy enjoyed its strongest growth since 2000 in the second quarter. Its central bank has also been raising interest rates, which has let the ruble perform much better than other commodity currencies like the Australian dollar. Speaking of commodities, Russia enjoys a potentially strong position with Europe starving for natural gas this winter and oil still trending upward.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.