FXI Chart Discussion

Posted by Blain Reinkensmeyer
January 30, 2007 at 9:32 pm

Looking at the chart of Ishares China (FXI), it has had a wild run the last few weeks. After topping out at $118.04 the fund sold off heavily, falling all the way to test $100 support not some 6 trading days later. Since though there has been decent support, and it seems the fund may be basing out. What you want to see is a break above $110 again, this would make a good buypoint. What is holding the stock back right now though are the 10 and 20 DMAs which have caused the stock has traded around recently. For a break above $110 to be confirmed, we will need to see strong accumulation volume.

If you are interested in China as a place to place some money, take a look at China Mobil (CHL) which has had a very nice start for 2007, and as well check out C D C Corporation (CHINA), which is now trading above $10 a share.