After the new Greek government assuaged fears of a write-down on debt and growing instability in the region, exchange traded funds that track once troubled PIIGS – Portugal, Ireland, Italy, Greece and Spain – could break out.

On Tuesday, the Global X FTSE Portugal 20 ETF (NYSEArca: PGAL) rose 2.5%, iShares MSCI Italy Capped ETF(NYSEArca: EWI) gained 3.8%, iShares MSCI Ireland Capped ETF (NYSEArca: EIRL) added 2.5%, Global X FTSE Greece 20 ETF (NYSEArca: GREK) surged 13.6% and iShares MSCI Spain Capped ETF (NYSEArca: EWP) increased 3.6%.

The uncertainty surrounding the Greek election and speculation of a potential withdrawal from the union pulled on Eurozone markets at the start of the year. However, some area are making a break.

For instance, the Italian blue chip MIB Index has broken out of a downward channel, writes Michael Kahn for Barron’s.

Kahn also points out that EWI is now breaking out after rising above $14. The ETF is rebounding from a seven-month downtrend and also broke above its 50-day moving average Tuesday.

EIRL has also been forming a triangle pattern over the past two months or so and broke above its upper line Tuesday in what may be a bullish technical indicator as well. Additionally, the Ireland ETF is now back above its 50- and 200-day simple moving average.

The rest of the PIIGS have been stuck in a downtrend as well, but they are closing in on their 50-day moving averages.

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