Emerging Markets ETF (EEM) Breaks Above Five-Year Resistance
From Chris Kimble: The iShares MSCI Emerging Markets Index ETF (EEM) did something this past week that it has been unable to do numerous times over the past five years.
Below looks at the price pattern of EEM over the past 10-years:
EEM has done well since the start of 2016, reflecting gains much stronger than the S&P 500. Over the past 5-years, EEM has little to brag about, as the gains have been pretty much non-existent!
This week EEM was able to put in a “Weekly Close” above highs at resistance zone (1) above. This breakout is a positive price signal and could attract buyers due to the breakout.
Next key upside test for EEM come in at the $50 zone, around 10% above current prices.
The iShares MSCI Emerging Markets Index ETF (EEM) closed at $46.66 on Friday, up $0.42 (+0.91%). Year-to-date, EEM has gained 33.89%, versus a 15.11% rise in the benchmark S&P 500 index during the same period.
EEM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 81 ETFs in the Emerging Markets Equities ETFs category.
This article is brought to you courtesy of Kimble Charting Solutions.