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 sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for INDA moved above the 200-day moving average on June 17, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2025. You may want to consider a long position or call options on INDA as a result. In of 75 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 INDA just turned positive on June 26, 2025. Looking at past instances where INDA's MACD turned positive, the stock continued to rise in of 45 cases 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 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 335 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 Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 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 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 .
INDA broke above its upper Bollinger Band on June 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Industry description
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General Information
Category WorldStock
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