Morpheus Trading: We have one new setup on today’s watchlist in KraneShares CSI China Internet (NASDAQ:KWEB), which broke its downtrend line in late May, and has since set a higher swing low.
The prior swing high near $35 on 5/28 has now become support, along with the rising 20-day EMA which is sitting just a few cents below $35.
The daily chart is building positive momentum, with the 20-day EMA crossing above the 50-day MA, and the 50-day MA flattening out.
Both averages are above the 200-day MA, which is pointing higher as well.
$KWEB should continue to hold $35 and eventually set a new swing high with the 50-day MA beginning to turn up. A break of the 200-day MA would kill the setup in the short term and force us to exit.
This article is brought to you courtesy of Morpheus Trading, LLC.