NFTRH+; China A Shares

The global picture is a mixed bag with non-starters, bouncing and momentum plays (like former NFTRH+ item, Japan/DXJ). One outpost in the global market that often seems to go its own way is the Chinese ‘A Shares’. Here is a weekly chart of the ETF for your review.

We noted earlier in the year that the Shanghai $SSEC was looking bullish and now ASHR is shown fanning along sideways with an upward bias. It is right at key resistance around 26 (actually just above the 2016 high), and weekly MACD has gone 0+ (green) for the first time in the grinding rally. RSI has gotten a little peppy and I wonder if ASHR will not drop again (to the trend line?) to calm it down a bit. But a rise and hold above 26 (either sooner or later) and the 2016 high could accelerate the rally that has been going on – pretty much under the radar – for all of 2016.

I am factoring absolutely nothing fundamental into this update.  That would be your responsibility, if interested.

ashr monthly chart

Buy Target:  Low/Mid 25’s (or 26+ if the break above the 2016 high holds for a couple of weeks).

Sell Target:  30 +/-, but open to refinement down the road.

Stop Loss:  Below 25 to suit risk tolerance, but a loss of 24 breaks the setup so below that would be a firm stop.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.