Assets charted: Italy’s SPDR (EWI)
For a while now a group of European ETFs seem to be emerging as a better trading opportunity than the US and Italy’s ETF might just be falling into this category. The EWI is a winner security with AC technical rate, which means that it has been correcting after a long term rally. As we can see on the chart it is testing very important support at 24.35 and just two days ago DomiStock produced an alert of price deflation. In other words, this is a long term winner which has become cheap. When that happens then the best trading strategy is the Long the Deflated Winner. The stop loss can be placed just under the support level. What you want to see if you buy EWI is the breach of the short term resistance trendline that DomiStock drew and the cancelation of the 14 period hedging trend (the red bars under the green ones in the middle window).
