Is FXI China ETF on the Decline?

I would like to take a look at FXI, which is an ETF representing the performance of the China equity market for international investors.  Looking at a 2 year chart, the top resistance level occurs around $47.  In November of last year, FXI formed a top at this level before the sell-off began.  It came all the way down to $38 level and currently at a decision point because the
major support line occurs at around $37.50.  We will soon find out if this support level will hold or if it will be broken.  If it holds, then FXI will most likely move higher towards its resistance level at $47.  We should keep a close eye on what happens at current support level because it can pose a great buying opportunity.  Would it make sense to buy now with a STOP-LOSS order placed at $36?  What is your recommendation on trading FXI?

If anyone decides to go LONG in any Chinese funds, then don’t forget to consider the potential bubble forming in China market.  No one know when it will burst, but until then, China market can still present great opportunities for US investors.

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