Will Chinese Stocks Be Able To Push Higher?
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ETF Watchlist
Today the ETF on our watchlist is a fund with a focus on overseas companies, more specifically, China. Yesterday, Chinese names had a great day after stocks like Alibaba (BABA) rose over 4% in a single day. This sets the stage for our next ETF on watch.
iShares China Large-Cap ETF (FXI)
As you may have guessed, the FXI is an ETF that tracks large-cap Chinese stocks. With BABA having the day it had on news that the company will be broken up, this gave enough juice to the ETF to also have a great trading session.
However, this run up can be looked at in two different lights. On the one hand, it could have some bullish gas in the tank, but on the other, this could be an overshoot as we are nearing a pretty significant level of resistance for the ETF.
In the case of this fund, you would want to keep on individual Chinese stocks to see how they are going to contribute to the performance of the fund itself. You would also want to keep an eye on how the ETF reacts to the area of 29.50 to 29.75, as this could end up being resistance. Make sure to watch the video breakdown below for more trading ideas and insight into the market!
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I look forward to trading with you, but until then, as always…
