The $EEM ETF is widely followed and has formed a very interesting pattern in 2013: the Broadening Wedge or Megaphone. Here is the Daily chart to illustrate this:
- The lows in April almost saw RSI tough the key 30 level but since it has drifted up and is approaching the 70 level
- As price moved up in May, volume has declined
- The 50 Simple Moving Average looked headed to hook up with the 200 but is now curling back up
For some more perspective, let’s take a look at the PnF chart:
For more information on the Broadening patterns, take a look here at what Bulkowski says.