EWY is showing signs of a constructive trend reversal after correcting from its June highs. The recent decline unfolded within a descending channel, while the broader primary uptrend remained intact as price continued to respect its long-term ascending trendline.

Over the past few sessions, EWY has broken above the descending trendline, signaling that the corrective phase may have ended and that buyers are beginning to regain control. The strong bullish candle accompanying the breakout increases the probability that this move represents a genuine shift in momentum rather than a temporary overshoot.

From a momentum perspective, RSI has also broken its multi-week downtrend line and is recovering toward the neutral zone, a classic early indication that bullish momentum is rebuilding. This positive divergence between price structure and momentum strengthens the breakout thesis.

If the breakout is confirmed with sustained closes above the recent resistance area around $170–$172, the ETF could target a retest of the previous highs near $200, with additional upside potential toward the $220 region based on the broader uptrend.

Structural Context

Beyond the technical setup, South Korean equities continue to benefit from improving sentiment around the AI semiconductor cycle. As the home market of global technology leaders such as Samsung Electronics and SK Hynix, the ETF is well positioned to benefit from sustained demand for advanced memory chips, AI infrastructure, and high-performance computing.

Conclusion, the combination of:

A breakout from the corrective downtrend,
A successful retest of the long-term rising trendline,
Improving RSI momentum,
And favorable semiconductor fundamentals,

suggests that EWY may be entering the next leg of its primary uptrend. As long as price remains above the breakout zone, the technical bias continues to favor a bullish continuation scenario.