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Can I Still Buy into This China Rally?

 

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.

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