The following
monthly chart of the Emerging Markets ETF (
EEM) shows that price has dropped below major resistance around the
50.00 level, after rallying towards its all-time high of
55.82. Near-term support is at
45.00, while major support lies below at
40.00 (the apex of a converging trendline and channel), or lower at
35.00 (historical price support).
Whether or not its current price represents fair value on this longer timeframe remains to be seen. The fact that January's gap up has now been filled may be a warning that lower prices are ahead, before this ETF begins to stabilize and present more of a viable buying opportunity.
