Indonesia exchange traded funds reflect a diverse and robust economy, and technical indicators reveal that the funds have positive momentum behind them.
The iShares MSCI Indonesia (NYSEArca: EIDO) is up 19.6% over the past year. Market Vectors Indonesia Index ETF (NYSEArca: IDX) has gained 17.3% over the last year.
Both funds have formed a significant technical event as they have broken out of a wedge pattern to the upside, reports David Gillie for The Street. Both ETFs are now trading above their 200-day moving averages and are holding.
Additionally, EIDO and IDX are showing a positive Moving Average Convergence, or MACD – a trend-following momentum indicator that represents the relationship between the exponential moving averages between two different periods. When the MACD rises above the signal line, it is considered a bullish signal.
In 2011, Indonesia’s GDP expanded 6.2% to $823 billion, which is larger than that of Sweden’s and Argentina’s, almost four times larger than Hong Kong’s and a just a little bit smaller than Australia’s