EWP Spain ETF Weekly Chart Sideways Channel Symmetrical Triangle Potential Bear Flag Pattern

EWP shows a sidewasy purple channel in place for Spain thru 28-38 for almost three years. The blue sidewasy symmetrical triangle continues to play out with a fake out to the upside during 2011 and a fake out to the downside in the Fall 2011. Price fell out of the triangle again over the last couple weeks. The green lines show the positive divergence that bounced price in the Fall and the indicators show a long and strong profile, albeit the RSI flatish. Thus, the green lines prefer to see price moving sideways with an upward bias.

Note the potential pink bear flag in progress now. The first leg down was 42 to 28, or 14 points, thus, if the second leg starts, at say, 33, that targets 19. But first thing is first. Projection is sideways for price thru the 28-33 range and the chart should show negative divergence when the 32-33 price area is printed, then watch to see if the second leg down for the bear flag pattern plays out. Failure of the 28 level will indicate trouble no matter when it occurs. Spain has the highest unemployment of all Euro nations with 50% unemployment rate for adults under 25 years of age. That is a sad tragedy.