“In terms of Elliott wave structure, the Italy ETF (EWI) appears to have spent the past seven years tracing a corrective triangle. The pattern has the characteristic converging range, and each leg has consisted of three smaller sub-waves,” according to See It Market.
[related_stories]Italy, the Eurozone’s third-largest economy faces an array of challenges and headwinds. Italy’s fragile banking sector, the largest sector allocation in EWI, is in focus as global market participants fret about Brexit’s impact on Italy’s banks.
Related: 10 ETFs Hit the Hardest in ‘Brexit’ Fallout
“Although the triangle scenario is not certain, it makes sense to treat it as the most likely pattern for now. In that case, the main target area to watch for wave [e]is near 15.20 to 16.40. Since triangles are time-wasting formations, it could take a year or longer for price to reach that area. A patient trader might see nearly a 45% increase in share value,” notes See It Market regarding EWI.
For more news and strategy on the Italy ETF market, visit our Italy category.
iShares MSCI Italy Capped ETF (NYSEArca: EWI)
