ETF Outlook For Wednesday, May 28, 2014 (EWG, EGPT, URA, FCG)
ETF Outlook for Wednesday, May 28, 2014
iShares MSCI Germany ETF (NYSE: EWG)
A 1.9 percent rally in the price of EWG helped the ETF close at the best level in over six years. All year the ETF had struggled to close above $32 after coming close several times.
The entire Eurozone rallied to begin the week on election results around the region that were viewed as bullish for the economy.
If EWG can hold near the $32 level on any pullbacks this week it would be a long-term buy signal.
Market Vectors Egypt Index ETF (NYSE: EGPT)
Egypt is onto their second day of elections and it appears the military will remain in power. The ETF was up 1 percent yesterday and is trading just below a multi-year high. Even though Egypt faces severe economic issues, it seems that the elections will not have a major impact on stocks.
Technically there is support at the $69 area and a close above $72 would be a buy signal.
Global X Uranium ETF (NYSE: URA)
URA was the largest gainer in the world of sector ETFs yesterday with a 4.2 percent rally to kick off the holiday-shortened week. The entire sector was moving, but there was no news of significance directly related to the stocks.
The charts show big volume coming into the stocks in general and it could be something to keep an eye on in the coming days. If the influx of volume continues it could be the start of some bargain hunting and a sustainable rally.
First Trust Natural Gas Index ETF (NYSE: FCG)
The natural gas stocks have taken a breather after a rally from March through the end of April sent FCG up nearly 20 percent. The pullback was orderly, and yesterday the ETF bounced off its 50-day moving average. The ETF closed the session up 1.7 percent and it appears the pullback is over.
Look for the ETF to rally in the coming weeks as it has bounced off support and is ready to retake the multi-year high of $22.90.
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