We include Peru in our Watchlist (EPU) – 16/08/17

We include the ETF Ishares EPU (MSCI Peru Index) in our watchlist because of its relative strength versus overall equity indices (World, Europe and US) as well as its positive technical configuration. The cost of this ETF is 0.63% and outstanding amounts are approximately $ 167 million.

Peru has a large and dynamic mining industry (mainly for copper and gold), which accounts for about 20% of GDP. Peru is the world's largest producer of silver, the 5th largest producer of gold, the 3rd largest producer of copper and a major supplier of zinc and lead. Major mining projects are planned for the next two to three years, which could increase the sector's contribution to the national economy. EPU is therefore indirectly a bet on commodities and its stock market behavior must be attributed the recent rise of copper and gold.

The weekly chart shows a medium-term upward trend that is reaching a significant resistance level of $ 36 / $ 37. The potential positive breakout of this resistance would open up a significant bullish potential. The positive crossing of the MACD is also a favorable technical factor. The long-term trend is positive and supports this scenario.

EPU : monthly data

EPU : weekly data