Monday, December 10, 2012

Emerging markets

Good news out on the China economy here.

A look at the charts of emerging markets show an interesting situation.

EEM looks to be breaking out of a consolidation on the daily as well as the weekly long term charts. It is a good sign when there are breakouts in multiple timeframes.

And markets are fractals. Meaning that often the same patterns are noticed in charts of different timeframes. Much as a tree is seen in a branch and a branch in a twig....

Notice the cup and handle formation in the weekly and daily charts and the breakout.

EEM:


This may be the start of another long term move in the emerging markets. And may be a harbinger of things to come worldwide.  Take another look at the small cap chart IWM....

and while we are here, an instance of support/resistance in MCP:


control risk!

gh

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