Iran peace deal could drop oil prices — long South Korean tech and shipping stoc
Thesis
The Strait of Hormuz is a vital artery for global energy supplies, and the threat of its closure has weighed heavily on the stock prices of major importing nations like South Korea. With a breakthrough deal potentially days away, energy costs are expected to stabilize, removing a major cloud over the global economy. This specific catalyst is already sending the South Korean market surging as investors anticipate lower costs for shipping and manufacturing. Buying a basket of South Korean stocks allows you to bet on this peace deal actually crossing the finish line and unlocking massive relief in global supply chains.
Strategy approach
Build a long equity strategy for EWY (iShares MSCI South Korea ETF) on the Daily timeframe. Enter when the price breaks above the upper Bollinger Band (20, 2) and the RSI(14) is between 60 and 80. Include a 5% trailing stop and a 10-day maximum holding period.