An ETF that invests in Turkey has paused for breath in recent weeks after a sharp rally in January. One technical analyst says the developing market fund is poised for a breakout to the upside.

“Late last week the iShares MSCI Turkey (NYSEArca: TUR) printed a bullish golden cross as the 50-day exponential moving average rose up through the slower 200-day EMA,” said Tarquin Coe at Investors Intelligence in a newsletter Tuesday.

The technical indicator is a sign of momentum and often leads to further gains.

Additionally, since August last year the price chart has been developing a potential inverse head-and-shoulders bottom.

“That pattern would confirm on a push above $55 [a share]and then a target to $70 would be projected,” Coe said. “Momentum is in a good field position … TUR also pays a dividend of 2.19%.”

The Turkey ETF is up about 24% so far this year.

iShares MSCI Turkey

The opinions and forecasts expressed herein are solely those of John Spence, 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.