For investors seeking momentum, iShares MSCI Europe Financials ETF (EUFN Quick QuoteEUFN - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 32.7% from its 52-week low price of $21.04/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

EUFN in Focus

The underlying MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe. The product charges 49 bps in annual fees (See: All Financial ETFs here).

Why the Move?

European market equities have been in a great shape lately. European banks are expected to report strong second-quarter earnings, driven by gains from ‌higher interest rates. Higher dealmaking gains are also expected.

Deutsche Bank and UBS beat forecasts with second-quarter earnings on July 29, thanks to an uptick in trading activity and strong retail business, as quoted on Reuters.

More Gains Ahead?

The fund might continue its strong performance in the near term, with a positive weighted alpha of 32.36 (as per Barchart.com), which gives cues of a further rally.