Can I Still Buy into This China Rally?
Technical Picture:
KWEB ETF (CSI China Internet Sector) signals a potential bullish reversal after a period of downtrend and consolidation. The breakout (Sign of Strength) above $36.04, accompanied by strong volume (FFI), suggests further upside potential, with targets in the $51.00 zone (and possibly $67.00), supported by Beijing's series of economic stimulus measures.
Technically, the upward outlook remains valid as long as the price stays above $35.87.
Investor Strategy:
Using a 61% stop-loss strategy, an investor could consider entering a position in KWEB.
The next step would be to calculate how much risk they can tolerate if the price drops below the 61% retracement level (around $30.00), at which point the investor would exit the position, assuming a reversal in macroeconomic conditions.
Disclaimers apply.