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.
INDA in downward trend: price dove below 50-day moving average on February 23, 2026
INDA moved below its 50-day moving average on February 23, 2026 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 23, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on INDA as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for INDA turned negative on February 24, 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for INDA crossed bearishly below the 50-day moving average on February 24, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 February 03, 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.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INDA advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
INDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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General Information
Category WorldStock
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