Don't Ignore This Chart

Frontier Markets are Outperforming US Market

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The Frontier Markets ETF (FM) has been outperforming the S&P 500 SPDR (SPY) since summer and held up much better than the US market in March-April. FM recently broke out of a consolidation and it looks like the bigger uptrend is continuing. 

The chart below shows FM with the 50-day EMA and 200-day EMA. The ETF is above both EMAs, the 50-day EMA is above the 200-day EMA and it recorded a 52-week high in January. It is safe to say that the long-term trend is up. 

The ETF surged in February, consolidated in March and then broke out of its consolidation last week. This breakout signals a continuation of the February surge and I would expect FM to exceed its January high. Chartists can use the March lows to mark support at 34. 

The indicator window shows the FM:SPY ratio turning up in July and moving to new highs over the last few months. This price relative hit a new high in early April and this means FM is outperforming SPY. 

Chartists interested in this ETF can learn more at the iShares website. Argentina (21.64%), Vietnam (18.23%), Kuwait (16.11%), Morocco (7.05%) and Kenya (6.84%) are the top holdings. 

 https://www.ishares.com/us/products/239649/ishares-msci-frontier-100-etf

Programming Note: My debut on StockCharts TV kicks off this Tuesday at 10:30AM. We will start by testing some key moving averages for the S&P 500. 

 

 

 

 

 


Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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