With The US Market in the Dumps Turn To China (Part II)

• Posted by Greg Harmon
• on December 4th, 2013

In Part I, last night, we looked at Baidu, $BIDU, as a Chinese name that is on the verge of a breakout. But the broad Chinese market is also looking pretty good. The Shanghai Composite, $SSEC, has been consolidating a move higher foe 2 weeks in a bull flag. The flag is at the previous symmetrical triangle from September through October and projects a move higher to 2320, near a full retracement of the move lower through June of this year. That would be a great move to

catch, if you were Chinese and living in China. The ‘A’ Shares that make up this index are not available to offshore traders. The iShares China ETF, $FXI, is an alternative but it is only 25 stocks and those that have deep pockets and mainly backed by the Government. But it gets you looking there. And it looks pretty good on its own merits. The short term consolidation int eh yellow box in a bull flag would target 43.30 on a break higher and the longer term Measured Move from the June low seeks 45. It only has resistance at 42 from January in its way. Look for a break over 40.15 as an entry.

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through November 2013 Expiry and sign up here for the free 7 day trial before you pay.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus