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March 14, 2006
Germany iShares Getting Overextended
The iShares Germany ETF (EWG) has also been a stellar performer since July 2005. The stock formed a reaction low in October and moved to the upper channel trendline in late January. This area represents overbought territory and the going has gotten a lot tougher around 22. However, the stock has yet to break down and surged on Friday. This establishes support at 21.3 and the bull is in firm control as long as this level holds. A move below 21.3 would argue for a correction or consolidation with a downside target around 20-20.5.
Posted by Arthur B. Hill at March 14, 2006 09:33 AM