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
