Triple Time-Framing The Breakout In This China ETF

April 10, 2015 by

new etfsCorey Rosenbloom: Blink and you missed this week’s surge breakout higher in previously stable FXI, a popular ETF that tracks the China 25 performance.

Let’s drill-down on the breakout from the Monthly Chart (open air) down to the Daily Levels to watch now:

The Monthly Chart above may give the clearest perspective of where the ETF has traded and where it may be headed in the future.

Namely, price (shares) found resistance into the $40.00/$42.50 key level from 2009 to present.

In 2015, price initially broke above this level and buyers continued fueling the price higher.

According to the chart above (StockCharts.com data), the prior high ahead of the 2008 Financial Crisis was above $60.00 per share, a possible reaction target should the buying pressure accelerate even faster (note 2007 for a historical precedent of skyrocketing prices).

We’ll monitor lower frames for risk and position management in an overheated swing:

Similarly, shares initially traded through the $40.00 barrier in mid-2014 only to retest the midpoint.

The second breakout- December 2014 – led to a continuation move albeit on lower volume and momentum into 2015.

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