This week we are going to look overseas again, to Germany this time. The German stock market has shown strong gains for the last few months, and we want to profit from this. We believe these trends will continue for a while and this is looking like a great place to get into the sector.

For an index, we are going to use iShare's Germany ETF (EWG). This includes several companies that you are probably familiar with, including ADRs for Daimler Chrysler (DCX) and Bayer (BAY).

For the last year, EWG has strongly outperformed our S&P 500 and NASDAQ 100 indexes. EWG is at just under a 30% gain while S&P 500 is at just under a 10% gain and NASDAQ 100 is at about a 15% gain for the previous 12 months.

As you can see in the chart that we have provided, EWG is now well above its 200-day exponential moving average line (green) after having last moved off of it in October of last year. Also, notice the 21-day exponential moving average line (blue). Several times before, the stock has dropped to the blue line, like it did on Friday, and then bounced off to head higher. You can also see that the %R indicator at the bottom of the chart is in the "overbought" area. This can be a strong indication of a trend, as you can see from earlier times.

EWG closed at 22.96 on Friday. We believe that it has to potential to reach 26 at least in the next few months. For a stop, if the price of EWG falls more then about a dollar below it's 21-day exponential moving average, that would probably be a good place to get out of the trade. We have already mentioned a few things that you can invest in for Germany, but there are also other ARDs as well as mutual funds out there that are available.

Price Headley is the founder and chief analyst of BigTrends.com.