EWG Surges in Reaction to Positive Greece Developments…. What Now?

The iShares MSCI Germany (EWG) is up 2.8% today in reaction to promising development in the Greek debt-repayment saga.

More significant to me is that today's strength in EWG has the right look of the initiation thrust of the start of a new upleg from within the confines of a still-viable 10-month, rounded, corrective-accumulation pattern, which, if reasonably accurate, indicates that EWG is on the verge of upside acceleration towards 32.50-33.00, and possibly to 35.00.

A sustained climb above 30.80/85 should trigger the anticipated upside follow-through-- along with an appreciating, supportive EURO.

That said, however, given the sudden and unexpected nature of the headline risk likely to be involved all this week, my sense is that would-be buyers will have another opportunity to buy EWG in the 29.80/60 area in the upcoming hours.