Summary of South Korea ETF (EWY) Price Forecast
Author: Bruce Powers
Published: March 26, 2026
Key Points
- Bearish signals confirmed on daily and weekly charts.
- Break below inside weeks triggers continuation risk.
- Bear pennant pattern points to further downside.
- $113.83–$112.00 zone critical for support test.
- Breakdown exposes $100 confluence target zone.
Market Overview
The iShares MSCI South Korea ETF (EWY) has recently shown significant bearish signals on both daily and weekly charts, indicating a potential continued decline. After reaching a peak of $154.22 in February, the ETF has experienced a reversal, leading to a correction that began three weeks ago. This peak represented a substantial gain of approximately 218% over a ten-month period, leaving the ETF in an overextended state and susceptible to a pullback. Following sharp selling, the ETF declined to a four-week low of $121.55.
Technical Analysis
The bearish trend was confirmed with a break below two consecutive inside weeks, followed by a decisive drop below the four-week low. This pattern resembles a bearish pennant, which is a typical continuation pattern in a downtrend. The current bearish correction is expected to test key support levels, particularly around the 38.2% Fibonacci retracement at $113.83, which coincides with the rising 100-day moving average near $112.00. This area is seen as a critical support zone, having previously acted as a significant indicator of support since April 2025.
Potential Breakdown Scenario
If the ETF breaks below the $113.83-$112.00 support zone, it could lead to a significant weakening of the bullish structure, opening the door for further declines. The initial target from the bearish pennant formation suggests a move towards approximately $100.30, which aligns with the 50% retracement level at $101.36 and a prior trend high of $100.79, creating a secondary confluence zone. If the 100-day moving average fails to hold, this lower target becomes increasingly likely.
Conclusion
The analysis indicates that the EWY ETF is currently in a bearish phase, with significant risks of further declines if key support levels are breached. Traders should monitor the $113.83-$112.00 zone closely, as a breakdown could lead to a more pronounced downtrend.
About the Author
Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder. Bruce has served as head of trading strategy at hedge funds and as a corporate advisor for trading firms, providing actionable insights through technical and fundamental analyses.