The world’s most popular sporting event is just about ready to kick off. Host country Qatar will play Ecuador on Sunday, November 20, 2022, to open play for the World Cup soccer tournament. The World Cup’s popularity will bring a ton of attention to the small country.
Aside from rooting for your country, exchange-traded funds (ETF) investors might consider rooting for iShares MSCI Qatar ETF (QAT). The thinly traded ETF tracks a market-cap-weighted index of large, mid and small-cap Qatari companies.
QAT looks poised to possibly move higher as the soccer world’s focus turns to Qatar. The ETF recently broke a downtrend and moved to the positive side of its 50-day moving average. Qatar ETF rallied about 10% in about a month the last time it broke a downtrend.
The previous downtrend break was also accompanied by QAT’s MACD line pivoting higher. We see the same combination this time as well. Of course, as you’ve heard enough to recite like lyrics to your favorite songs, past performance is no guarantee of future results. On the downside, investors might consider cutting losses if QAT closes below $20.65ish. It trades at $21.55 as we type.
Trading ETFs with limited volume, like iShares MSCI Qatar ETF (QAT), is only appropriate for investors who can handle well-above average volatility as a small wave of selling can push QAT lower in a hurry. And, of course, a small wave of buying can have the opposite effect.