VEU Pulling Back to Support
by Sam Collins 09/25/09
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Vanguard FTSE All-World ex-US ETF (VEU) -- This exchange-traded fund (ETF) seeks to track the performance of the FTSE All-World ex-US Index, which is made up of approximately 2,200 stocks of companies located in 46 countries.
On Aug. 25, at $41.42, I said, "Sometimes we see a chart that technically seems to have it all, and this is one.
"Note the very bullish cup-and-handle, followed by a gold cross, which is executed at the beginning of a bull channel and accompanied by very high buying volume. The stochastic just issued a buy signal, so it is possible for VEU to break above the bull channel with a target of $54."
The stock has not broken the bull channel and now appears to be pulling back. The first line of support is below yesterday's low at around $42, and then at the bullish support line at around $40.50.
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