China Rally? Keep an Eye on FXI

Posted by Blain Reinkensmeyer
January 11, 2008 at 10:39 am

If you want to take advantage of some very fast moving stocks, then China is a great place to invest when the bull is on. The best way to monitor China’s top prospects is to watch the ETF tracking the top 25 (ticker FXI), and below you will find when is the time to buy in.

FXI correlates with stocks like China Mobil (CHL), Petro China (PTR), China Life Insurance (LFC), amongst others. Based on the chart below the resistance is clearly defined, and if we see a strong institutionally backed *heavy volume* move through resistance that is the time to buy. Let’s take a look at the chart.

Click to View, FXI Stock Chart

Based on the above chart we are as of now looking for a strong volume move through $180. Another factor to take into consideration is the leading moving average which in this case is the 50 day moving average. If $180 can be broken the 50 MA will most likely start uptrending again, a very bullish sign.

Lucky for you I will post the break when and if it happens, along side the top china prospects to consider adding to your portfolio. Stick around.