Is China ETF (FXI) Setting Up For Further Losses?

Sharing is Caring!

by Kimble Charting

Chinese stocks have been in a funk this year, testing the patience of many investors in that equities space.

The selloff took shape at the beginning of the year and has continued through this fall. Is there an end in site? Perhaps not quite yet…

Today we look at a “weekly” chart of the iShares China Large Cap ETF (FXI) from, to better understand what’s next for large cap Chinese stocks.

See also  China Real Estate ANOTHER Default as Contagion Spreading Fast!

As you can see, FXI has traded in a wide sideways channel for the past 5 years marked by each (1). It hit the top of the range several months ago where it started creating lower highs in side of a falling channel marked by each (2).

See also  China’s hypersonic missile test is another obvious warning sign…

A bearish wedge pattern has formed and offers support at $40. But if FXI breaks down through that support then it is likely headed to the bottom of the channel around $34 (or 15% lower!)



Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.