Sam Collins

New Buy Signal for Emerging Markets Fund

    Tweet This

Free Trading Guides

iShares MSCI Emerging Markets Index Fund (EEM) -- This index, which is designed to measure equity market performance in the global emerging markets, contains a number of the technical characteristics that indicate that this investment will likely be successful.

On June 29, with EEM trading at just over $32, I said, " Note the major breakout from the triple-top, which became a bullish cup-and-handle, the gold cross, a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), and Moving Average Convergence/Divergence (MACD) turning and near to a buy signal." 

And, on July 28, at $35.40, I said, "Since then [June 29], this ETF executed a breakaway gap and headed to new highs. We'll stick with the target of $50. "

I'll still go with a target of $50, but note the double-top. This indicates resistance, but the selling volume is, on balance, less than the buying volume. Also, note the CBR buy signal at the 50-day moving average (blue line).

Buy at the blue line (about $34) with a stop-loss under the supporting channel at $32.  

 5 Surprising Rules for Rebuilding Your Wealth. Investors sitting on big losses are being told to just hunker down and take their lumps … and if they can just be patient and wait another 12 or 24 months, their investments will come back. That's shameful advice! Once you know the new rules of trading, you'll see how easy it is to earn double- and triple-digit profits now. Start rebuilding your wealth today.