This index reached the target of the "head-and-shoulders" reversal pattern shown in the red circle here. We had a good (13%) correction from resistance. The price confirmed support last week and we see a buy signal from the Stochastic in the top window.
The next target is the all time high at 450. This implicates an increase of 33% for emerging markets.
The price moved sideways to meet the rising support line. There is horizontal support at 37.70. The MACD Histogram (green, top window) is above the zero line and came back from overbought levels. The stochastic in the upper window is giving a "buy signal in a bull market". The volume in the lower window is above the moving average, indicating buying pressure.
This is a bullish setup and investors can view is as a buying opportunity. Speculators should implement, and follow their money managent and stoploss principals
