High Probability ETF Trading: 7 ETFs You Need to Know for Tuesday (GLD, IAU, EWZ, GDX, DBO, USO, EPI)

Light profit-taking on Monday helped ease markets like the ^SPY^ and the ^QQQ^ out of overbought territory and into neutral territory heading in to Tuesday’s trading session. And while buyers have remained relatively aggressive in energy shares (at least until late in Monday’s session), commodity-based funds have come under significant selling as noted below.

Here are 7 ETFs You Need to Know for Tuesday.

Gold and other commodities came under heavy selling on Monday. Opening in oversold territory above the 200-day moving average are both the ^GLD^ and the ^IAU^.

In addition to the pair of oversold country funds from yesterday’s report (EWJ and EWC, both of which remain in oversold territory heading into trading on Tuesday), the ^EWZ^ (below) has also retreated toward levels from which it has historically reversed and moved higher.

EWZ chart

Shares of EWZ pulled back by more than 1% in Monday’s session, closing below its 5-day moving average for the first time in over a week.

Not only commodity-based gold ETFs, but equity-based gold funds like the ^GDX^ (below) have retreated to oversold territory.

GDX chart

After a sharp rally higher early in the second half of March, shares of GDX have closed lower for three days in a row.

Also oversold above the 200-day are a number of oil commodity funds such as the ^DBO^ and the ^USO^.

A number of country funds representing equities in the Indian stock market have become overbought below the 200-day moving average and thus vulnerable to a reversal to the downside. An example of this is the ^EPI^ (below).

EPI chart

EPI closed higher for five days in a row below the 200-day heading into Monday’s session. And despite closing modestly lower on the day, EPI remains in overbought territory.

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David Penn is Editor in Chief of TradingMarkets.com