Chart Of The Day: Russian ETF (RSX) Feeling The Pain

Russia has had its share of economic pain over recent years, but the past year has really gotten ugly. And this is taking its toll on Russian stocks. Just take a look at the Russian ETF (RSX).

Many variables come into play, but many relate and revolve around its relationship with Europe. And this one has many tentacles. Here are a few: 1)  Russia’s continued tension with Europe and the West over the Ukrainian conflict. Sanctions and an all out war of words have hurt the Russian economy.  2)  The Euro Zone economic slowdown is also hurting Russian energy exports and trade. Oh, and Crude Oil is around $65/barrel which adds to the dire situation 3)  The Ruble is sinking and much of this has to do with confidence.

So what’s up with the chart?  Well, the drop below the yellow line ($22.50) signaled caution. And the recent dip to the lower falling lower support line (in red) puts the ETF in a precarious situation. What happens next may hint at how dire the situation in Russia is getting (and this could have ramifications on geopolitical tensions).

Russian ETF (RSX) Chart

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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.