The iShares MSCI Emerging Markets ETF (NYSE:EEM) appears to be breaking important support around the $52.00 level, which is bearish for the stock.
Support is a large concentration of buyers. At support levels, there is more demand than there is supply. This is why downtrends end when they reach them.
But when the support breaks, meaning the share price falls below it, it shows that the buyers who created the support have left the market. They have either finished or canceled their orders.
With this large amount of demand out of the way, sellers will be forced to accept lower prices for their shares. This could result in a new downtrend forming.
