The iShares MSCI Germany (ARCA:EWG) is up 2.8% to start the week in reaction to promising developments in Greece's debt-repayment saga.
More significant to me is that Monday's strength in EWG has the right look of the initiation thrust of the start of a new upleg from within the confines of a still viable 10-month, rounded, corrective-accumulation pattern, which, if reasonably accurate, indicates that EWG is on the verge of upside acceleration toward 32.50-33.00, and possibly to 35.00.
A sustained climb above 30.80/85 should trigger the anticipated upside follow-through -- along with an appreciating, supportive euro.
That said, given the sudden and unexpected nature of the headline risk likely to be involved all this week, my sense is that would-be buyers will have another opportunity to buy EWG in the 29.80/60 area in the upcoming hours.
