I was glancing at FXI (China ETF) while my knee was freezing wrapped with THIS ! I came out with these two curves (A) & (B) ! The (A) curve was tested several times ,with the green dots acting as resistance, before being broken for good purple dot ! The (B) curve that we are in right now has a logarithimic shape, it has also been tested several times with the red dots acting as support ! I am confident that when the (A) curve will be broken the next time around we will have a major shif in FXI to the downside with targets in 2010 of $32 ....
It's not easy being a Bear on FXI these days ! I'd rather focus on entering a long term trade on FXP(Double short FXI) on pullbacks !! There are too many Bulls on China .. way too many, and I'm feeling a bit lonely here !! Sort of like Bruce Lee in this video ... but guess who wins at the end !! ;)
