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  • Jay

Time to load up on China ?


Last week, I've updated my Twitter feed with the following chart and comment (you can see it here as well)

SHCOMP

The "#Shanghai composite breaking out of its 12 months downtrend channel with a bullish divergence."

Two ETFs focused on China had an interesting week since...

First off, the iShares MSCI China ETF ($MCHI) showing absolute & relative strength. It has broken out of its downtrend in absolute terms, and is also showing relative strength vs. the All Country World Index.

MCHI

Second, the iShares China Large Cap ETF ($FXI) which double bottomed at the 61.8 retracement level of the Feb'16-Jan'18 advance, and is now breaking out of its downtrend line.

FXI

Bullish price action with good risk/reward.

Interesting weeks ahead!

Jay

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