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FXI China ETF Outlook

Member @double-r likes to trade the 3x leveraged ETFs of Russia (RUSS/RUSL) and China (YINN/YANG) and asked my opinion on the charts. As I prefer to use the 1x (non-leverage) ETF for analyzing the charts & determining my entries & exits when trading leveraged ETFs (as the decay from the leverage renders an distorted picture of where past interactions with buyers & sellers occurred) here is my daily chart & thoughts on FXI (iShares FTSE/Xinhua China 25 Fund ETF).

FXI daily April 5th

FXI daily April 5th

FXI recently broke above this bullish falling wedge pattern & reversed off major resistance (orange line). My preferred scenario would be a backtest of the wedge in the coming weeks followed by a sustained move higher ASSUMING that the US equity markets don't come under heavy selling pressure. To be clear, my near-term read on FXI is not strong enough to warrant taking a position, long or short, at this time although I do believe that FXI is worth monitoring for a potential trade candidate in the coming weeks or months. The gray horizontal lines mark potential price targets/resistance levels, should FXI take out that key orange resistance level around the 34.30 level. RSX (Russia ETF) also looks to be setting up as a potential long-side trading opportunity, charts & comments to follow under a separate update.

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Apr 5, 2016 12:01pm|Categories: Equity Market Analysis|Tags: , |2 Comments

2 Comments

  1. Double R April 5, 2016 6:26 pm at 6:26 pm

    @rsotc thanks for the update on FXI

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  2. rsotc April 5, 2016 10:28 pm at 10:28 pm

    …and thank you for bringing it to my attention Double R. RSX (Russia ETF) looks even more compelling. I’ll post that chart + comments tomorrow.

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