Monday was another bloodbath for already battered emerging markets exchange traded funds, but there could be some encouraging technical signs developing with an ETF that has the potential to be one of this year’s sturdier developing world funds.

The iShares MSCI Mexico Capped ETF (NYSEArca: EWW), one of last year’s less bad Latin America single-country ETFs, has again been less bad to start 2014. Or decent depending on one’s perspective. EWW is slightly in the green on the year, no small feat considering the generally dismal action delivered by many emerging markets ETFs, and a case can be made the lone Mexico ETF is showing signs it move higher. [Mexico ETF Could Be 2014 Buy]

“We see that EWW formed a bullish reversal candle last week on a pick-up in volume. A move above the highs of last week’s reversal candle is a potential buy entry for a starter position,” according to Deron Wagner of Morpheus Trading Group.

Earlier this month, Wanger pointed out that EWW “has spent just nearly all of 2013 in consolidation mode, after breaking out to new all-time highs in Q4-2012. On the long-term monthly chart, notice how the recent pullback found new support at prior resistance of the former all-time high (a bullish sign).”

While other LatAm single-country ETFs, such as the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) have continued to struggle in 2014 after getting shellacked last year, EWW has been comparatively firm as professional investors have been attracted to Mexico by the allure of market friendly reforms promise to make the country’s economy more globally competitive and attractive to foreign investment.

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