The iShares MSCI Emerging Markets ETF (EEM) is on bearish 1W price action (RSI = 41.481, Highs/Lows = -1.8644), repeating a pattern last seen in April 2011 - May 2012. During that period the price was rejected at 44.90, crossed below the MA50 and MA200 and found support just over the 0.786 Fibonacci level before recovering 100%.
We expect a similar price behavior...
EEM which can be thought as "Emerging Markets" looks fucked to me.
Baring a sudden trade deal this week (unlikely), EEM could see sub $40.
The puts I purchased last week have already doubled in value. :)
From a TA standpoint, let's review.
Price is below the green line (bearish) but bounced off support in the last 10 minutes of the trading...
3/May/2019 09:18 PM
If global markets are going to continue rallying, EEM will likely push to the past highs. With IWM breaking out I would think to look to EEM as well and see how it is holding up.
I wouldn't be surprised if EEM is just made up of Chinese internet companies though.
EEM is mostly made up Chinese A-shares meaning this ETF is primarily dependent upon data coming out of China. Recent data is quite promising while the US-China trade war negotiations continue to show positive developments. Exports data coming out of China is positive this morning, moreover the US will not keep on putting pressure on China politically according to...