Great Graphic: Emerging Market Stocks
|This Great Graphic from Bloomberg is a weekly bar chart of MSCI Emerging Market equity index. In H2 15 and H1 16, it carved out a head and shoulders bottom that we identify on the chart. We also drew in the neckline and noted the minimum objective of the inverse head and shoulders pattern.
The index has risen 12.25% in Q1 17 to approach the objective. Technical indicators also suggest scope for a correction. The Slow Stochastics have turned down. The MACDs are about to cross lower.
A break of 960 would be the first preliminary indication that the impressive rally in Q1 is over and the index has approached levels which are potential turning points. An advance through 971 would suggest that it is premature to pick a top, but we would be attentive to near-term reversals, and like the higher levels as an opportunity to lighten positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.