iShares MSCI Australia Index Fund ETF (EWA) has recently broken out of a bullish symmetrical triangle. This triangle is also the handle of a cup w/handle formation and at the high end of a 15 month basing period. 

Last week EWA pulled back towards support of the triangle and bounced intraday on Friday off the 21 period exponential moving average (ema) of its daily chart. This retracement may have lower to go before turning back up but once complete is set to begin to trend higher once again. 

Confirmation of strength is indicated once EWS closes above the top of the triangle at $26.36. At that point it would have cleared the cup w/handle formation and smaller symmetrical triangle with a good chance of reaching the measuring objective of the triangle. 

The measuring objective of the triangle indicates that EWA could reach $28.19 or 10.5% above the triangle breakout price of $25.50, and 8.5% above last week’s close of $25.79. A little above there is previous price resistance around $30.33 to 30.54. 

Calculation to determine the symmetrical triangle measuring objective is as follows:

High of triangle, $26.15, less low of triangle in same period, $23.46 = $2.69 difference. Adding $2.69 to the breakout level of $25.50 gives us a minimum target of $28.19. (www.etf-portfolios.com)