Corey Rosenbloom: When doing ETF scans, I came across three “Rocket Arc” Patterns I wanted to share with you.
Let’s take a look at these three “Rocket Arc” Patterns in these country-based ETFs following Greece.
We’ll start with a “Perfect Arc” Pattern in Germany iShares (EWG):
I like the “Arc Trendline” or “Rocket Arc” Pattern because it highlights a strong rally which gives way to a sideways “arc” ahead of a sell-off swing as the “Rocket” falls back to earth.
It’s just like a rocket lifting off, stalling at the highs, and then returning back to earth from gravity.
Note the blast-off from $26.00 per share all the way above $30.00 when negative divergences developed.
From there, price retested the $30.00 level and are likely on a descent back to earth – down away from $30.00.
Should shares continue falling under $28.00 per share – the midway support target – then $26.00 is in play.
The same logic applies to Switzerland’s iShares ETF symbol EWS:
While Germany was a more stable Rocket Arc Pattern, Singapore had a more violent lift-off (from March) and is seeing an equally violent return to earth.