ECH, the Chile ETF is promising
Following Latin America’s favorable market conditions, ECH – the iShares MSCI Chile Capped ETF – moves in a bullish trend since the beginning of January.
If we join all the highs of ECH in December, the upper blue line, they follow a downtrend. If, on the other hand, we join the lows of ECH at the end of December, the lower blue line, we can see an uptrend developing.
This price action led to the bullish outbreak at the beginning of January that started with a gap and a huge bullish candlestick.
Following that, ECH broke easily the yellow resistance line, and then the price took place at the upper Bollinger Band.
Then, another consolidation stage occurred at the second half of January, shown with another pair of blue lines.
The whole momentum has been shown in MACD, as the second consolidation wasn’t strong enough to cause MACD to break below its signal line.
ECH’s Relative Strength has been trending up and above its 20- day exponential moving average since the beginning of December.