Germany ETF generates a bullish signal after gap higher
The iShares MSCI Germany ETF (NYSE: EWG) gapped lower on May 23 and then gapped higher on May 24. The interesting thing is that the gap lower caused the ETF to move outside of a trend channel that has defined the various cycles over the last few months and the gap higher moved it back into the channel.
The oscillators aren’t in oversold territory, but the stochastic readings did come close and have now made a bullish crossover.
One potential concern is the fact that the 10-day moving average just crossed bearishly below the 50-day. The moving averages hadn’t made a bearish cross like that since last August. At the time of the last bearish crossover, the EWG was in a similar pattern with a tight trend channel, but that channel was downwardly sloped.
I am more bullish than bearish on EWG and part of the reason is due to a bullish signal from the Tickeron AI Trend Prediction Engine. The engine produced a bullish signal for the EWG on May 23. The confidence level for the signal was 89% and 85% of past signals on the fund have been successful. The signal calls for a gain of at least 4% over the next month.
EWG in upward trend: price expected to rise as it breaks its lower Bollinger Band on April 04, 2025
EWG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 40 cases where EWG's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 17, 2025. You may want to consider a long position or call options on EWG as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EWG just turned positive on April 15, 2025. Looking at past instances where EWG's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
EWG moved above its 50-day moving average on April 14, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for EWG crossed bullishly above the 50-day moving average on April 24, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EWG advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EWG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for EWG entered a downward trend on April 17, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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