Emerging Markets & Emerging Europe trends break down

Emerging Markets brkoe down the trend channel and are targeting the 55-DMA at 30.31.

Upside is capped by the 21-DMA at 32.86 and it should serve a good R?R Stop-loss level for a short trade looking for a test of the 200-DMA at 26.60.

RSI & ADX both are confirming the downtrend direction and strength.

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Emerging Europe is the next best thing to watch as a proxy to the sentiment of the Bulgarian Stock Exchange-Sofia.

The obvious breakdown of the trend channel match the Emering Markets technical view with supports and targets at the 55 and 200-DMAs (30.47 and 27.94). The short sell trade has a risk of reversal to the long side at the 21-DMA which negates the bearish view.

RSI and ADX are both clearly showing there is a downtrend in progress at present so we stick with he short side until there a divergence is observed.