During today's MarketWatchers LIVE show (Tune in MWF 12:00-1:30p EST) Tom Bowley and I looked at "Monday Set-Ups". Check the MarketWatchers Recap here to see the list. I found the Singapore ETF (EWS) through a Price Momentum Oscillator (PMO) Scan that I like to run (see it in this ChartWatchers article). This chart came right to my attention even with over 50+ CandleGlance charts the scan produced. Here's why I like it:
First we have a beautiful breakout today after two gaps, likely a breakaway and a runaway gap. The PMO just generated a crossover BUY signal. The 5/20/50/200-EMAs are configured positively. OBV has been trending up with price and the SCTR has now moved above 75 into what I call the "hot zone".
The breakout today is more significant in a weekly context. This is taking out resistance formed by the lows in 2014/2015, as well as the tops from 2011 and 2012 that I've marked. Support at $21.50 is very strong, note all of the "touches" by interim price tops and bottoms. This support level would likely be a great place for a protective stop. I am concerned that the PMO is somewhat overbought right now, but it has just picked up some acceleration and we have seen higher readings back in 2010 after a strong rally.
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Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
