4.33% for the day, while the Nasdaq lagged behind, still managing to clinch a 4.17% on the day. Gold and oil charged higher alongside soaring equity markets. Futures prices for the precious metal settled near $1,750 an ounce for the day while crude oil managed to hold its head above the $100 level as the trading session drew to a close.
Switzerland’s third-quarter GDP is slated to come out before Wall Street’s opening bell, which makes the iShares MSCI Switzerland Index Fund (NYSEARCA:EWL) our ETF to watch for today. Investors will look to see if the financially sound European nation is still on track, with analysts expecting growth to come in at 1.8% year-over-year, a modest decrease from the previous reading of 2.3% [see EWL Scorecard & Rankings ].
Even Switzerland, which is largely considered as one of the most financially stable nations in the world, couldn’t escape the Euro zone debt drama [see our Euro Free Europe Portfolio ]. Notice how EWL has endured a serious correction since topping out at $28.57 a share on 6/1/2011. Since breaking below its 200-day moving average (yellow line) in early August, EWL sank lower and lower as the European debt woes intensified, hitting a recent low at $20.67 a share on 9/23/2011. Investors should note that EWL has considerable support around the $21 mark, seeing as how this ETF has managed to hold its ground above this level on 9/23/2011, 10/4/2011, and once again on 11/25/2011 [see EWL Charts].
Despite carving out a very clear triple bottom, establishing a long position in EWL at current levels is still quite speculative from a technical perspective since the fund is still trading below its 200-day moving average.
If Swiss GDP surpasses analyst expectations, investor worries surrounding the Euro zone may ease up even more, potentially paving the way higher for EWL [see Top 5 Countries Most Widely Represented By ETFs]. In terms of upside, this ETF could very well summit the $23 mark by the end of the week, while over the coming weeks we would advise short-term traders to lock-in profits at $25 a share, given that this is a significant resistance level. On the other hand, if uncertainty resurfaces after a gloomy economic outlook, EWL may very well re-test support at the $21 level. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit taking techniques.
Written By Stoyan Bojinov From ETF Database Disclosure: No Positions
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