CHILE Equity Index Technical Analysis – May, 02, 2016

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

ECH

Analyst: Victor Campos, CFA.

Source: LATAMPM with Tradingview.com data. Prices as of May, 2, 2016.

DISCLOSURE: The analyst or analysts responsible for this report may or may not have direct or indirect positions on the stocks and securities mentioned before, as of the date or after publishing. This report is for informational purposes only, based upon publicly available information. Accuracy and completeness of the information cannot be guaranteed. LATAM PM is not in any way be liable for claims related to this report. The information and analyses may not be suitable for your specific circumstances. Each investor shall make their own determination of the suitability of an investment of any securities referred to in this report.

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