Nigel Chong 庄证评 wrote a post · May 2 20:01

China Bull 📈 China dragon revive again?

Back in beginning of April, I shared that China/HK stocks are showing sign of strength.

On top of the policies that China government impose, charts have continuously formed higher low, and nearing a high - close to a breakout

$Direxion Daily FTSE China Bull 3X Shares ETF(YINN.US)$ YINN - leveraged ETF of $iShares China Large-Cap ETF(FXI.US)$ FXI, it tracks the big cap of China companies, have similar price movement but 3 times leveraged. I made my buying decision based on FXI, leveraging on YINN its leveraging effect.

When first introduced -

YINN - 20.24 > 26.39 (+30.3%)

FXI - 24.59 > 27.15 (+10.4%)

I have mentioned that - instead of averaging down, I prefer to participate when price near breakout/breakout

Prior to recent bullishness in $Hang Seng Index(800000.HK)$ HSI has formed a inverse head and shoulder chart pattern

Current price breakout of the pattern and holding above 200MA.

Hang Seng Index

FXI and YINN has similar chart - VCP pattern and breakout from stage 1 base. Confluently, price breakout from 200MA and holding above, formed another higher low - a characteristic of uptrend.