Monday, November 26, 2012
Will The Second Time Be the Charm for the Chinese ETF?
The long-term trend of the Chinese ETF is consolidation in a symmetrical triangle pattern. Several weeks ago, prices broke out, but fell back to the 200 week EMA. Last week, however, prices printed a strong bar. While volume was weak, that can partially be explained by the market being closed on Thursday and weak overall participation on Friday. Bolstering the bull argument is the rising MACD and positive CMF reading.
But also consider the Chinese copper market is now flashing a warning signal, as imports dropped 22% in October.