With no changes to any of the iShares models this week, we take a look at the iShares MSCI Chile ETF (ECH).
There are no changes to any of the iShares models this week. As we have discussed in the Daily Equity Report, international equities now rank first in the DALI asset class rankings after overtaking domestic equities earlier this month. Investors looking to increase their exposure to international equities may wish take advantage of an actionable entry opportunity in the iShares MSCI Chile ETF (ECH).
Earlier this month, ECH formed, but didn’t break a double top at $47.50 and then broke a double bottom at $45. In Tuesday’s trading (2/24) ECH reversed up into a column of Xs on its chart, entering the action phase of a potential shakeout pattern, which would be completed with a triple top break at $47.50.
In addition to the recent chart action, ECH has a strong overall technical picture – it currently has a near-perfect 5.72 fund score, which is 1.0 points better than the average for all non-US equity funds, and a positive 1.36 score direction. ECH also currently ranks seventh out of 45 names in the World ETF Matrix.
Those initiating exposure may consider $42.50 as a potential stop as a move to this level would negate the potential shakeout pattern; beyond this level the next support on ECH’s chart sits at $36. Year-to-date (through 2/25) ECH has gained 10.72% on a price return basis; the fund also carries a 1.8% yield.
