EZA: Gold's Bounce Bodes Well For South African Stocks After A Bruising Decline

The iShares MSCI South Africa ETF remains a "Buy" as gold rebounds and valuation stays compelling at a 10-11x P/E. The ETF's 45% Materials weighting and top holdings in gold miners make gold price action critical for EZA's outlook. Despite a 24% recent drawdown, EZA sits at its 200-day moving average with a bullish long-term trend and potential double-bottom support.