Emerging Markets ETFs in Uptrend Supported by High-Volume Buying

EEM and other emerging markets ETFs are coming off a banner month of asset-gathering in March, which helps put a dent in some of the assets these funds bled over the past two years.

“March’s total of $9.09 billion was the most in records going back to the start of 2014 and more than made up for losses of $5.29 billion in the first two months of the year. For the first quarter, emerging market ETFs added $3.8 billion, the most since $7.41 billion in last year’s second quarter, the data show,” according to Bloomberg.

EEM “is now in an intermediate uptrend supported by high-volume buying and a new buy signal from the MACD indicator. However, the recent rally has left EEM overextended. Thus, traders should use limit orders to buy shares under $33 with a target of $40 — the bearish resistance line. If successful, this trade will result in a gain of more than 20%,” adds InvestorPlace.

iShares MSCI Emerging Markets ETF

Tom Lydon’s clients own shares of EEM.