This ETF has started off the year with a shake up in direction away from the predominant downtrend that occupied most of the second half of the 2016. Should the price be able to hold itself well at these levels there is a strong case for the previous support of $25 being touched in the not so distant future.
As mentioned above, the downtrend has broken upward with a of reluctancy from price to proceed higher. The most probable cause of this is a change in dynamics of sentiment with a brief pause in anticipation for further clarity on a continuing or expired belief.
Observing the 50 day moving average(yellow line) indicates a shift in polarity from bearish to bullish if judging the passover of price above this line a few days back.
Price movements alongside the 50 MA show a similar course to what is exhibited on the Moving Average Divergence Convergence indicator. From an optimal point of view, traders would prefer to go long when both the price is above the 50 MA and the MACD lies on top of the zero line.
The occurrence of a comparable action at present does strengthen the argument for higher prices going into the first quarter of the year.
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