RSX First Price Target Hit, Pullback Likely

In the comments section below the recent Global Equity Markets video, member Eric K. had asked my thoughts on RSX (Russia ETF), which I had covered a few weeks early in this previous Global Stock Markets video. In that video I had laid out the bullish case for RSX on both a near-term & longer-term perspective. Since then, RSX went on to break out above the minor channel that was highlighted on the daily time frame & just recently hit my first target at the 17.91 area, gaining about 10% from where the stock was highlighted in that April 10th video .

While the longer-term bullish case still appears intact, it appears to me that RSX is likely to pullback from that 17.9oish target/resistance area & could very likely experience a multi-week+ correction along with most other global equity markets going forward. If long RSX or any other Russia tracking ETF, one option would be to set a stop slightly below the blue uptrend line that I've added to this daily chart while an aggressive trader might look to position short here with a stop slightly above 18.00 or an alternative short entry on a break below the blue uptrend line.

My preferred pullback target at this time would be the 15.80 horizontal support level (gray line) although I'm open to the possibility of additional downside, depending on how things develop going forward. RSX was not an official long trade idea nor is a short trade on RSX official either. Just sharing my observations & opinion on the charts for those interested.

2017-03-08T21:19:50+00:00 May 2, 2016 2:04pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: |Comments Off on RSX First Price Target Hit, Pullback Likely