We have marked in the chart three distinct stages of EWW’s price behavior. The blue box marks the uptrend of EWW – the iShares MSCI Mexico Capped ETF – where price moves nicely in a bullish channel between its 10-day exponential moving average and the upper Bollinger Band.
In the second stage – the orange box - price drops below its 10- 20- and 50-day exponential moving averages and stops at the lower Bollinger Band.
At that point – the green eclipse – the bulls react decisively and with two big bullish candlesticks separated by a gap send price above all its moving averages and close to the upper Bollinger Band.
This momentum reversal has been depicted in MACD, which has started turning up.
Finally, EWW’s Relative Strength has been moving up and above its 20-day exponential moving average since late August and the last momentum surge made Relative Strength turn up again.