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Since March or 2011, the iShares MSCI Japan Index Fund (EWJ) has been in a major downtrend. On Wednesday, this ETF rallied above its down-trending 200-day MA for the first time since July of last year. However, yesterday, EWJ struggled to hold support of this key mark. EWJ could provide a shorting opportunity on a rally into resistance of its downtrend line or if it loses support of the 200-day MA on a spike in volume. Although we’re still bullish on the market, EWJ could provide a shorting opportunity should the market correct for a few sessions. Regardless, when the market does see it’s next reversal, ETFs that are rallying into resistance of long term downtrend lines and down-sloping 200-day MAs will generally provide the best shorting opportunities.

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