Time to buy Chinese Companies Listed in the U.S.?
The chart below shows FXI on a weekly basis.
FXI has been bouncing on trend-line support (1) for the past few weeks.
This has been “the” line in the sand for FXI since 2005 and has produced many sizeable rallies over that time in the ETF.
How ironic that this support line comes into play exactly as the Chinese begin to float/announce measures of incremental stimulus measures!
As I always say, such catalysts have an uncanny way of emerging when major support/resistance is in play for various asset classes!
A long position in FXI with a stop below support (i.e., ~7%-10% stop) could be a very solid reward/risk set-up right here with the potential for Chinese ADRs (different from the SSEC!) to out-perform the SPX over the intermediate-term.