China bottoming out, Attractive to buy ahead of Winter Olympics 2022

Technical Strategy Video (Recorded Thursday, November 11th):

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • China slowly but surely bottoming out, and recent stabilization bodes well for buying into Chinese Equities ahead of Beijing 2022 Winter Olympics
  • Technology stocks in China look relatively attractive vs US Technology; While this trend is just starting to turn up, this will become more appealing on a breakout above October in relative terms when looking at ETF’s like KWEB
  • Emerging markets are starting to hold up quite well, even during a Dollar rally. Wave structure in EEM, VWO remain corrective, suggesting an eventual push back to highs

China Bottoming

Don’t look now, but $FXI (iShares China Large-Cap ETF) looks to be forming a Reverse Head and Shoulders pattern which would be confirmed on a close over 42.70.  Given Thursday’s surge to multi-day highs, weekly charts are shaping up nicely and momentum is improving.  It looks right to favor a bounce in China into next year, positioning here and using any weakness to average down. Initial upside targets lie between $46-48.

The video in this report is only accessible to members
China Technology firming up vs US TechnologyKWEB, the KraneShares CSI China Internet ETF, looks to be bottoming out, similar to FXI.  The...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)