October 26, 2010
Shares of iShares MSCI EAFE Index Fund (NYSE: EFA), which tracks a broad selection of publicly traded securities in the European, Australasian and Far Eastern markets, as measured by the MSCI EAFE Index and excluding the U.S., appears to be having difficulty at $58.00 a share.
That happens to be the prior April highs reached just before the market declines began. After nine days of failing to surpass this level, it is becoming an increasingly important resistance level.
If EFA can make a decisive close above $58.00 a share, the ETF has the potential to quickly run to $61.28 a share. A close above $61.28 takes it all the way to $65.40.
Watch for a close above $58.00 a share for a bullish entry. Use a buy stop below $56.00 a share to protect against declines. A reversal from $58.00 a share could be a short trade setup.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in the iShares MSCI EAFE Index Fund.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in the iShares MSCI EAFE Index Fund.