With the advent of the ECB Bond-buying QE program this week, and the plunge (collapse) in the Euro, one look at the iShare MSCI Germany (ARCA:EWG) pattern, and I am hard pressed to continue to find an excuse to avoid participating on the long side of the German equity market.
Since last August, EWG has carved out a base-like pattern in the aftermath of multi-month correction of the Oct 2011 to June 2014 bull phase.
Furthermore, the action thus far during March shows that the price structure climbed above the upturning 200-Day EMA, and then pulled back to the EMA today (at 28.61), where it pivoted to the upside, now at 29.07 in a price move that has the right look of the start of a new upleg.
It is time to enter the long side of the EWG for an upleg that projects to new highs above 32.37, into the 33.00 target zone.
