iShares MSCI Mexico Index Fund ETF (EWW) broke out of a tight Bullish Ascending Triangle pattern on Friday to close at $61.92, near the high of the week. Volume was muted due to the holidays, so has not yet confirmed this breakout. The breakout signal was $61.62. 

At the same time, EWW is pushing right up against possible resistance of $62.04, the 161.8% Fibonacci extension level of the downtrend measured from the April 30, 2010 high and also the exact high of Friday! 

EWW has already surpassed $61.08, the target of the large Symmetrical Triangle as seen on the accompanying chart. This target is calculated by taking the distance from the top descending line to the bottom ascending line on May 25, 2010, then adding this distance of $9.51 to the breakout price of $51.57, to arrive at $61.08. 

In regards to the structure of the Symmetrical Triangle, the May 6, 2010 “flash crash†high of $61.60, is being ignored given the pattern structure that resumed after that day. However, EWW has now closed above that price level. 

A close above the 161.8% Fibonacci level will, and improving volume will confirm the strength of this breakout, or whether it will fail. The record high resistance is at $65.15. (www.etf-portfolios.com)