After plunging amid “runaway gaps” after the earthquake, the ETF tested the 52-week low, said David Chojnacki, market technician at Street One Financial.
“After bouncing off the low, the ETF has traded more recently in a range of $9.85 to $10.60 a share,” he said in analysis prepared for ETF Trends.
“It currently has some short term strength as it moves above its 20-day and 50-day simple moving averages. Its MACD [a momentum indicator]has also recently crossed above its signal line, indicating the momentum to the upside,” Chojnacki said. “EWJ also looks to be establishing longer term strength as it is about to move through its 200-day simple moving average. The top of the range ($10.60 a share) has been formidable resistance since March. Above this level, there is additional resistance at the $10.80 and $11.10 area. Support can be found at the 20-day and 50-day averages and also at the bottom of the recent trading range.”
iShares MSCI Japan
Chart source: StockCharts.com.
Editor’s note: For more information on Street One ETF research, contact [email protected].