CHILE´s ECH. May, 02, 2016
ECH (ISHARES MSCI CHILE CAPPED ETF)
We are introducing the Chilean equity market to our technical analysis watchlist, using Chile´s broad equity market index ETF, ECH (USD-denominated).
The ECH has been in a rally since mid-January after it formed a double bottom around 29.45.
As we can see in the weekly chart the ECH is approaching the top of a channel that started in September 2013 and is testing a major resistance between 39 and 38 formed by past support levels.
The longer term trend favors a bearish case for the ECH, however to take advantage of this price action we should wait for a clear break of the counter trendline in order to take a short position.
ISHARES MSCI CHILE CAPPED ETF
Analyst: Victor Campos, CFA.
Source: LATAMPM with Tradingview.com data. Prices as of May, 2, 2016.
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