Morpheus Trading: Chinese tech stocks continue to act well, and China Internet ETF (NASDAQ:KWEB) has recently broken out to new highs on strong volume. The pullback thus far has held above the prior breakout level at $36:
The shorter-term daily chart shows the recent pullback off the highs, finding support at the 20-day MA. Since there was a sharp pullback to the 20-day exponential moving average, the price action may stall out and trend sideways for a while before the uptrend resumes. If so, then we will look for a low risk entry point to emerge early next week:
On the stock side, we’ve seen a decent amount of new buy setups emerge, which tells us that the market may be able to follow through to new highs soon.