It’s time to put the iShares MSCI Emerging Markets (NYSE:EEM) on your radar. Although the near-term trend is down, the broader price pattern is taking the shape of a bullish flag pattern.
And a breakout here would signal a trend change. Let’s look at the chart… As you can see, there is a potential bull flag pattern in play for the hard-hit Emerging Markets ETF (EEM). If it breaks out at (2), it should attract buyers.
The latest bounce comes off of quadruple support at (1). A breakout above channel resistance would be very bullish near-term. While another thrust lower would keep bears in control.
If EEM support breaks at (1), it would send a concerning message to stock bulls around the world. Stay tuned to what this key sector does in the near future!
