Monday, January 16, 2017

Possible Breakout In Japan ETF (EWJ)

I think we may have had a breakout in Japan ETF EWJ today. The equity has been moving sideways for a while and seemed to be stuck in an ascending triangle (sort of). We haven't had confirmation yet with a second close above the line so tomorrow will be a critical day for us, but the ascending triangle pattern is a little weak and one I am not particularly hot about. What is important is that the American dollar is still weakening, a buy signal was put in seven sessions ago, and my long-term momentum indicator just crossed over bullishly. The one cautionary thing I have to say is that moving averages are getting pretty spread out, so some kind of mean-reversion will need to take place.