Is China Setting Up For A Bullish Reversal? (MCHI)

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August 30, 2018 6:24am NASDAQ:MCHI

Image of a traditional Chinese building

From Chris Kimble: The hard-hit Chinese Hang Seng Index tested a big support level this month. Is this key Chinese stock market index ready to stage a rally here?


Let’s take a look at today’s 2-pack of charts to see why the Hang Seng Index (and perhaps select emerging markets) could be primed for a rally.

Hang Seng Monthly Chart

Looking at the chart below, the Hang Seng this month is testing triple support at point (2). As well, it looks to be creating a large bullish reversal pattern.

Good news for bulls if this support continues to hold…

Global Market Performance Chart

As you can see, Chinese stocks have been very hot of late.

The iShares MSCI China Index Fund (MCHI) was unchanged in premarket trading Thursday. Year-to-date, MCHI has declined -5.89%, versus a 9.66% rise in the benchmark S&P 500 index during the same period.

MCHI currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #9 of 39 ETFs in the China Equities ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.


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