iShares MSCI Malaysia (NYSE: EWM) is down 4.4% in the past two weeks and is now oversold according to several indicators. EWM closed last week with a PowerRatings of 10.
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 10 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
In the past, buying stocks with a rating of 10 on a 5% pullback the next day and selling five days later has been profitable 77% of the time. The average winner has gained 7.8%. Other entries and exits also show high winning percentages and large average gains.
Multiple indicators confirm the PowerRatings buy setup. These indicators can be followed at Trading Markets Analytics with a screen that shows multiple indicators at a glance.
Each of the indicators shown is oversold and the conditions for a buy setup are met. If EWM shows additional weakness, it will offer traders a high probability trading opportunity.
All data is as of the end of day on 12/20/2013.