Timing's Right for Five Country-Based ETFs

Stock quotes in this article: EWP , EWC , ADRE , FXI , EWZ  


iShares MSCI Spain Index (EWP)
Click here for larger image.
Source: eSignal

The iShares MSCI Spain Index (EWP Quote) ETF posted a notable high in the fourth quarter, just like other instruments reviewed in today's column. It took a similar downside path into January, bottoming out with the world markets. The recovery since that time has been slow and steady, with a graceful series of rally waves followed by shallow pullbacks.

Progress stalled several weeks ago after the fund reached the 62% retracement of the November-to-January selloff. It's been moving sideways since then in a developing triangle pattern, with resistance over $64.20. A rally through that price level would offer a good entry signal for a run up to the 2007 high at $69.14.


iShares MSCI Canada Index (EWC)
Click here for larger image.
Source: eSignal
The iShares MSCI Canada Index (EWC Quote) ETF rallied to an all-time high at $36.68 in November and dropped 10 points before printing a major low in January. It jumped back into the low-$30s in the next month and then dropped into a basing pattern until April 16. The fund broke out above base resistance on that date and rallied up to $33.61.

Price has been pulling back for the last week or so, filling the breakout gap and testing new support levels. These levels should hold and give way to a continued recovery. Accumulation is relatively weak, so I doubt this fund will surge quickly back to the 2007 high. Instead, look for a slow and steady uptick that lasts into the third quarter.


Alan Farley provides daily stock picks and commentary with his "Daily Swing Trade" newsletter.

  • Loading Comments...
  •  
1 2 3
Next >

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • linkedin
At the time of publication, Farley had no positions in the stocks mentioned, although holdings can change at any time.

Farley is also the author of The Daily Swing Trade, a premium product that outlines his charts and analysis. Farley has also been featured in Barron's, SmartMoney, Tech Week, Active Trader, MoneyCentral, Technical Investor, Bridge Trader and Online Investor. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

Farley appreciates your feedback; click here to send him an email. Also, click here to sign up for Farley's premium subscription product, The Daily Swing Trade, brought to you exclusively by TheStreet.com.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,246.97 1,093.01 2,151.08 34.82
Oil *
77.27
UP
20.03
DOWN
0.06
DOWN
2.98
DOWN
0.04
10 Yr
3.48%
SPDR Gold
108.39
+0.20%
-0.01%
-0.14%
-0.11%
Data delayed 20 minutes

Brokerage Partners

TheStreet Premium Services

All Services