An exchange traded fund benchmarked to Singapore’s equity market is threatening to break out after pausing for breath following a big start to 2012.
“The iShares MSCI Singapore (NYSEArca: EWS) is breaking above a three-month consolidation to score its best level in seven months,” says Investors Intelligence technical analyst Tarquin Coe. “That sideways move appears to be a bullish pennant, patterns that occur mid-way through an advance. That implies the fund is trending up to the $15 [a share]region, a level which would conquer the 2011 high of $14.61.”
The Singapore ETF is up 21% year to date. The fund holds $1.6 billion in assets and charges an expense ratio of 0.52%.
“Overbought conditions are a long way off,” Coe said. “Price action is favorably above both the 50-day exponential moving average and 200-day EMA, with both indicators rising. The ETF also benefits from a yield of 3.61%.”