Emerging market equities have enjoyed a strong July and the EEM exchange-traded fund is on the verge of breaking out from a completed head & shoulders chart pattern bottom:
EEM (Daily – 3 Year)
A breakout above major support/resistance near ~$36 would target at least $42 (16.7% above current levels). Perhaps more importantly a solid bottom in emerging markets would bode well for commodities (the EEM and CRB have historically exhibited a strong positive correlation) and global growth as a whole. This is an important chart that investors can’t afford to not pay attention to.
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