ISHARES MSCI EMERGING MARKETS ETF (EEM)

Every week Tech Charts Global Equity Markets report features some of the well-defined, mature classical chart patterns under a lengthy watchlist and the chart pattern breakout signals that took place during that week. Global Equity Markets report covers single stocks from developed, emerging and frontier markets, ETF’s and global equity indices. The report starts with a review section that highlights the important chart developments on global equity benchmarks. This blog post features from the review section iShares MSCI Emerging Markets Index ETF (EEM).

The benchmark for the Emerging Markets performance, the iShares MSCI Emerging Markets Index ETF (EEM) is consolidating around its 200-day average that is acting as support at 42.3 levels. The ETF is forming a broadening formation. Broadening chart patterns are difficult to analyze and trade. If the latest consolidation is part of a larger scale bullish reversal chart pattern, the ETF should stabilize around the 42.3 levels. Richard Schabacker discusses broadening formations and inverted triangles in his book Technical Analysis and Stock Market Profits. As an example for inverted symmetrical triangle he used the price chart of Standard Oil of NJ which is featured below. “IF” the broadening formation takes the form of an inverted symmetrical triangle we can have a similar continuation of the trend for Emerging Markets. (Data as of 02/04/2019 10:00 AM CET)

An example for a broadening chart pattern acting as a continuation

Price chart of Standard Oil of NJ from Richard Schabacker’s book (first published in 1932) Technical Analysis of Stock Market Profits.

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