Playing the Setup in iShares MSCI EAFE

Published on Wednesday, 20 June 2012 08:28 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - iShares MSCI EAFE Index Fund (NYSE:EFA) closed the the trading session at $50.18, near its 50 day and 200 day moving averages currently set at $50.59 and $51.28 respectively. iShares MSCI EAFE's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.

iShares MSCI EAFE Index Fund (NYSE:EFA) is an ETF with the investment objective to seek investment results that correspond to the price and yield performance of equities traded in the Australasia, European and Far Eastern markets, as measured by the MSCI EAFE Index. The underlying index measures international equity performance. It includes 21 MSCI country indices, representing the developed markets outside of North America, including Europe, Australasia and the Far East.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $47.68 and resistance at $49.56. Traders should monitor these levels, as they provide insight into the latest price dynamics in iShares MSCI EAFE.

If traders want to establish a position on iShares MSCI EAFE, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.