India ETF is Surging
The India (country) ETF recently made a 2-year high after surging and triggering a "weekly" ADXodus setup. The Inida ETF, PIN (Powershares India Portfolio ETF), is based on a cap-weighted index that gives international exposure to India's emerging market.
The weekly chart above shows a classic ADXodus setup as presented in my book, ADXcellence--Power Trend Strategies. The strategy looks for a period of low ADX (under 25) for about 20-30 bars. Low ADX sets up an explosive condition for the trade, which in this chart, is a reversal setup.
The ADXodus pattern requires a new +DMI high (green) above 25 and a new price high. This occurs on the cross of the descending resistance line. Price also crosses above the 50 EMA, which is the long-term moving average on a weekly chart.
Next, the +DMI "dips" but remains strong, and price holds at the 10 or 20 moving average (In this example, the 10 SMA is used). The buy is made on a pivot low at the moving average.
Country ETFs are a way to diversify a portfolio and take advantage of trends in international markets. PIN is showing a strong price surge, and it could begin a new, long-term uptrend. Since PIN is extended off its 10 SMA, wait for a pullback to find the next low risk entry point.
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