Indonesia ETFs Build Momentum on Economy, Technicals
January 24th 2012 at 2:26pm by Tom Lydon
Indonesia exchange traded funds reflect a diverse and robust economy, and technical indicators reveal that the funds have positive momentum behind them.
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
The Southeast Asian country is rich in natural resources, including oil, gas, bauxite, siler, tin, copper, gold coal, timber, rubber, rice, palm oil and coffee. The economy also produces garments, footwear, furniture, paper products and electronics, exporting to China, Japan, Malaysia, Singapore, South Korea and the U.S.
Market Vectors Indonesia Index ETF
For more information on Indonesia, visit our Indonesia category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.