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Tickers in this Article: EWC
The bull parade continues on Wall Street in the face ofintensifyingworries over when the next downturn will finally come around. The S&P 500 Index posted another five-year high as the benchmark settled just above 1,490, inching closer and closer to the psychologicallysignificant1,500 level. On the ETF front, the well-known SPY turned 20 years old yesterday, and what better way to celebrate than with a handsome gain on the day . With no major economic reports slated to hit the homefront later today, investors will likely turn their attention to the north as the Bank of Canada interest rate decision takes place. As such, the iShares MSCI Canada Index Fund will be on our radar screen as it may see an uptick in trading activity following the economic commentary released after the rate decision itself. Analysts are largely expecting for Canadian policy makers to keep rates steady at the current 1.00% level .

Chart Analysis

After kicking off 2013 on a positive note and grinding along the $29 level for the last week, EWC appears to be gearing up for a breakout to the upside judging by its bullish price action over the last two trading sessions. Notice how above-average buying volumes bolstered this ETF higher on January 18, 2013, perhaps suggesting that new buyers are stepping in around the $29 level, which would imply that EWC should have enough momentum to break above its historic resistance (red line) around $29.50 a share .

Click to Enlarge Entering into any sort of position at current levels,whetherlong or short, is not recommended forconservativeinvestors given EWC's proximity to a majorresistancelevel .

Outlook

If the latest economic outlook issued by the Bank of Canada strikes an optimistic tone, EWC may have the much-needed catalyst to charge higher; in terms of upside, this ETF has major resistance around $29.50 a share. On the other hand, pessimistic or over-cautious commentary may open the doors to profit-taking pressures; in terms of downside, EWC has support at $28.50 a share followed by the $27 level. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.

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Disclosure: No positions at time of writing.

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