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's Stochastic Oscillator is remaining in 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.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INDA advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 326 cases where INDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on INDA as a result. In of 76 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 July 10, 2025. 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 44 similar instances when the indicator turned negative. In of the 44 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 .
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General Information
Category WorldStock
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