iShares MSCI EAFE Is Approaching its 50 Day Moving Average

Published on Monday, 25 June 2012 08:28 Written by TradersHuddle Wire

New York, June 25th (TradersHuddle.com) - iShares MSCI EAFE Index Fund (NYSE:EFA) ended the trading session at $48.44, near its 50 day moving average set at $50.38. iShares MSCI EAFE's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

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 $47.99 and resistance at $50.83. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in iShares MSCI EAFE, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.