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Trade Of The Day: Diversify International Exposure With Egypt ($EGPT)

|Includes:VanEck Vectors Egypt Index ETF (EGPT)

The turmoil surrounding the restructuring of the Egyptian government was mirrored by the price action in the Market Vectors Egypt Index ($EGPT) exchange traded fund. The stock fell from its April 2010 $22 high to a low of $9 put in this past Christmas. Since then it has made a spectacular rebound, regaining $5 in lost value. Recently, the stock completed an island reversal chart pattern (see weekly chart below)and broke $14 resistance. It's been trading on heavier than normal volume indicating rising investor interest. The chart shows a lot of airspace above the current level and the only headwind it's likely to encounter is in the form of political risk (the current government is still tenuous) which is where your due diligence should be focused. This fund would make a nice addition to a portfolio of international stocks so if you need to replace one of your current holdings, do consider Egypt. Currently, there are no options and the fund's yield is just over 2%.

Stocks: EGPT