Technical Focus on Shares of Hong Kong Index MSCI Ishares (EWH)

Lloyd Doyle
November 14, 2017

Pinnacle Advisory Group Inc. increased its stake in shares of iShares MSCI United Kingdom Index (NYSE:EWU) by 1.7% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The NYSE listed company saw a recent bid of $21.23 and 307596 shares have traded hands in the session. As markets tend to move in cycles, it may be necessary to align the portfolio to the category that is best positioned to make consistent gains in the future.

Investors might have been ready to throw in the towel as the rally stalled recently. Zooming in on the most pertinent information can help keep things manageable.

At the time of writing, the 14-day ADX for Germany Smallcap MSCI Ishares (EWGS) is 19.69. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. The ATR basically measures the volatility of a stock on a day-to-day basis. The ADX was introduced by J. Welles Wilder in the late 1970's and it has stood the test of time. The general interpretation of the ATR is the higher the ATR value, the higher the volatility. Ishares Core MSCI EAFE IMI Index ETF (XEF.TO)'s Williams Percent Range or 14 day Williams %R is sitting at -82.57. Alternately, if the indicator goes below -80, this may point to the stock being oversold. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend.

The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. As a momentum oscillator, the RSI operates in a set range. The normal reading of a stock will fall in the range of 30 to 70.

After a recent check, Germany Index MSCI Ishares's 14-day RSI is now at 45.20, the 7-day stands at 32.14, and the 3-day is sitting at 12.81.

Conducting further technical review, shares of Finland Index MSCI Ishares (EFNL) have a 200-day moving average of 38.18. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold). Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. CCI may also be used to help discover divergences that may signal reversal moves. Moving averages can be very helpful for spotting peaks and troughs. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. Currently, Hong Kong Index MSCI Ishares (EWH) has a 14-day ATR of 0.19. Taking a glance at the relative strength indictor, we note that the 14-day RSI is now at 45.39, the 7-day stands at 43.27, and the 3-day is sitting at 29.73.

Finland Index MSCI Ishares (EFNL)'s moving averages reveal that the Tenkan line of the shares are below the Kijun-Sen line, indicating potential downward momentum building in the bearish chart. With markets still riding high, the big question is whether the momentum will push stocks higher or if the bears start to take over. When the RSI line moves up, the stock may be experiencing strength. Finding these stocks may involve doing a little more homework.

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