Russian ETF bullish breakout

Since mid-February, and for about three months, RSX – the VanEck Vectors Russia ETF – was moving in an ascending channel between the blue lines.

In mid-May, though, the price behavior changed as the bulls decided to move price at an even steeper uptrend. As we can see in the orange box, price followed a steep rising channel between the price 10-day exponential moving average and the upper Bollinger Band.

Another indication of the strong bullish trend is the fact that the 20- and the 50-day exponential moving average are also rising steeply and diverging from each other as momentum keeps going stronger.

It’s interesting to note the behavior of MACD. As soon as momentum buildup started MACD crossed above its signal line and quickly moved to bullish territory.

In a similar manner, in mid-May RSX’s Relative Strength also moved above its 20-day exponential moving average and is still rising.