The iShares MSCI Chile ETF - ECH - has been a notable underdog in the last few months.
Especially, when you look at the technicals in comparison with ILF - Latin American 40 which provides exposure to 40 large cap companies across Latin America, ECH appears to have been a significant under performer.
After logging a high of 53.69 around mid-September 2013, the ETF tumbled to a low of 39.08 in early February 2014 and since then has gained about 19% to be at 46.67 as of this week's close. From April 2014, ECH's price has been moving somewhat sideways with the long term moving average sloping down slightly. Price has been hovering around the average.
What interested us was positive price action in the last 4 weeks culminating in a decisive close above this long term moving average on above average volume this week.
Investors appear to be reacting to the country's recent Central Bank observations of continuing slump in GDP growth which has raised the expectation of an interest rate cut to stimulate the economy.
Technically oriented investors may want to take note of this positive price action in recent weeks. If price moves above 47.19 it might indicate a positive shift in investor outlook for this ETF.
Good Luck and Happy Trading!