As posted a couple months ago iShares MSCI Japan Index Fund ETF (EWJ) had broken down from a large head and shoulders top reversal formation, as seen in the weekly chart.
Since, it has failed to follow-through to the downside and is now showing signs of strengthening, at least in the short-term. A double bottom reversal has formed on the daily chart. Bullish confirmation is needed and signaled on a close above the neckline at $9.44. Last week’s close was $9.45. If EWJ can rise higher from here or stay above the $9.44 price area, then further upside is likely. Around $10.00 is the next area to watch for resistance.
The long-term weekly bearish head and shoulders top remains valid however unless EWJ closes above the downtrend line. This line is coming down from the top of the head and connecting the right shoulder. (www.etf-portfolios.com)
