India ETF Hits Resistance Point
Emerging market indices have had a rough go of it over the last year. India’s market has actually held up better than most other emerging markets since the beginning of the year. That being said, there is a technical pattern in the iShares MSCI India ETF (Amex: INDA) that suggests that India’s index might be turning lower again.
If we look at the daily chart we see that the fund dipped down to the $32.50 level in May and in June, but bounced each time. The fund then broke below the support level in late September/early October. It dropped all the way down to the $29 area before rallying over the last few weeks.
It is rather common for former support levels to become resistance points after a stock or ETF falls below them. How and why does this happen?
The thought process behind why this seems to happen goes something like this. An investor holds the investment as it falls from the August high down to the $32.50 level and thinks the support will hold once again. When it breaks below that support and goes all the way down to $29, they are kicking themselves for not selling when the support broke. Now they see the price back up at the $32.50 level and don’t want to miss the opportunity to sell at that level again and so they act.
We see this phenomenon quite often and it works the other way as well—former resistance levels become support levels after stocks or funds break above them and then dip back down to them.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
INDA sees its Stochastic Oscillator recovers from oversold territory
On August 25, 2026, the Stochastic Oscillator for INDA moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 58 instances where the indicator left the oversold zone. In of the 58 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 31, 2026. You may want to consider a long position or call options on INDA as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
INDA moved above its 50-day moving average on July 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for INDA crossed bullishly above the 50-day moving average on July 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 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 INDA advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for INDA turned negative on August 17, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INDA 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 INDA entered a downward trend on July 28, 2026. 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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