As much of the world continues to claw its way out of recession, China enjoyed another stretch of robust expansion in the third quarter, growing 8.9 percent from the previous year, according to government figures released on Thursday.
The country’s faster growth was largely fueled by increased bank lending, generous government support for exports and a 4 trillion yuan, or $585 billion, stimulus package that is spurring a dizzying array of building projects.
According to the National Bureau of Statistics, the rate of expansion jumped from 7.9 in the second quarter, which would put the nation on target to reach the 8 percent target that Chinese economists say is required to maintain healthy employment and social stability.
Let's see how this is impacting FXI -- the China ETF. Click for a larger image.
A.) Prices have been in an uptrend since early March. Prices in general have been following the EMAs -- note how prices have fallen to the 10, 20 and 50 day EMA on a regular basis during this part of the rally. In addition, there was also trend line C which connects the low of early March and early July. Prices broke this trend line in mid-August.
D.) Prices are now consolidating in a slightly upward sloping channel.
