This Eurozone ETF Is Facing a Bearish Divergence

The iShares MSCI Eurozone ETF (EZU) is an ETF which, according to the iShares website, "seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency." With 252 holdings, frankly I don't have the time to drill down, but a quick look at the top stocks (Total TOT, Santander SAN, Siemens SIEGY, Allianz) tells me that they are not all on the same page. Like other indexes, heavyweight stocks can hide what might be happening to the broader list. Keeping that in mind, let's check the charts and indicators for EZU.

In this daily bar chart of EZU, below, we can see that prices have been climbing the past year. EZU is above the rising 50-day moving average line, but we can see a number of times when prices were below the average. The slower-to-react 200-day line has defined the uptrend and is well below the price action. The volume pattern is uneven and shows a number of strong sessions....287 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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