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.
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http://www.ft.com/cms/s/0/e871ca92-37a0-11e2-8edf-00144feabdc0.html#ixzz2DKwXPHICChinese copper data have just taken a worrying turn for the worse.
The country’s imports of the red metal tumbled 22 per cent in October
to their lowest in more than a year. At the same time, stocks of the
metal have risen to a record high: in October alone, inventories at
Shanghai exchange and bonded warehouses collectively rose by about
135,000 tonnes, and are now not far off 1m tonnes, most traders believe.
