Looks like China economy has bottomed up and slowly recovering. Both PMI and FXI are telling some bullish stories.
A few bullish signals on FXI chart:
- FXI has broken the resistance of $39.33.
- FXI is trading above 20D, 50D and 200D SMA.
- FXI is showing “Higher High, Higher Low” uptrend pattern.
- FXI is showing a nice Elliott Wave.
- FXI broke out from A Rising Wedge.
Things to Watch:
- Need to wait for FXI to retrace back to about $40 to test the resistance turned support level.
- $40 is an entry level for a bullish trade. (Buy on Dip on an uptrend strategy).
FXI is iShares FTSE/Xinhua China 25 Index (ETF).
Top Holdings* as of 1/3/2013
| NAME | % OF FUND |
|---|---|
| CHINA MOBILE LTD | 9.71% |
| CHINA CONSTRUCTION BANK-H | 8.80% |
| IND & COMM BK OF CHINA-H | 8.01% |
| CNOOC LTD | 6.77% |
| BANK OF CHINA LTD-H | 5.94% |
| CHINA PACIFIC INSURANCE ... |
