This Chart Reveals Potential Danger For Emerging Markets (EEM)

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July 7, 2017 7:15am NYSE:EEM


From Chris Kimble: Emerging Markets (EEM) have done well this year, gaining over twice as much as the S&P 500 (17% vs. 7%). These gains have Emerging markets facing resistance dating back to the highs in 2008 and a couple of other important resistance lines in the chart below.

Emerging markets have been a downside leader since 2008 and an upside leader since early 2016. EEM is testing triple resistance with momentum lofty.

If support would give way at (2), selling pressure could pick up speed, leaving room for Emerging markets to “submerge!” Important price point at (2) for this key market. The tight jam EEM finds itself at right now, could create a good deal of movement, when it resolves this narrowing pattern!

Bulls so much need EEM here to breakout to the upside!

The iShares MSCI Emerging Markets Index ETF (NYSE:EEM) rose $0.09 (+0.22%) in premarket trading Friday. Year-to-date, EEM has gained 17.25%, versus a 7.61% rise in the benchmark S&P 500 index during the same period.

EEM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 79 ETFs in the Emerging Markets Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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