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March 21, 2006
EWJ Breakout
Japan won the World Baseball Classic and the iShares Japan ETF (EWJ) celebrated with a triangle breakout. The triangle represents a consolidation or rest after an advance. The breakout signals a continuation of the prior advance. Even though I find the breakout bullish, I also find Japanese stocks a bit overextended. As long as 13.7 holds, this breakout is in great shape. A move below 13.7 would question the breakout and further weakness below 13 would be outright bearish.
Posted by Arthur B. Hill at March 21, 2006 02:43 PM