At War: Market Vector Russia ETF Trust Crosses The Thin Red Line
What you are about to read will not focus on political views, sanctions or any other fuel added by the media to this existing crisis. All of that information is simply noise. What matters to us as technical analysis traders is very simple, the charts. The following chart is telling us that a war has already begun, as "The Thin Red Line" on the Market Vector Russia ETF Trust (NYSEARCA:RSX) has been broken.
Looking at the chart above, we can clearly see that the Market Vector Russia ETF Trust (NYSEARCA:RSX) broke below a major trendline on the weekly chart. But what does this mean and why is it so important? It means that while the markets continue to be indifferent to this crisis, a major war is not out of the question. This chart has been moving sideways for about ten weeks after confirming below the trendline. This indicates that a major break down is possible, and it can take place at any point now.
Unless the RSX can climb back above the $24.50 level, the chart will remain in an extremely weak technical position. If the RSX was to break down lower, the next major levels of support are; $18.05 and $10.31. The border line in the charts has already been crossed; bulls and bears are already at war. As traders all we care about is whether the weekly trend line can be recaptured. If it fails to do so and breaks down, it will be the result of a major escalation and possible war between Russia and Ukraine.
Kiliam Lopez Elite Round Table