I revisited the wave count of FXI yesterday and came out with an alternate 5-wave count compared with my previous analysis . The trend still remains bearish and there is no modifications in the target price.
In this alternate count, we have a simple wave i, wave ii and wave iii as depicted in the graph and an expanded triangle as wave iv that consumes considerable amount of time and form compared to wave ii.
That set the stage for an extended wave v with the target price in the range of 18-20. Wave 2 has reached 50% of the retracement of wave 1 in this extended wave v.. Whether wave 2 is a simple zigzag or flat remains to be seen. Using 1.618 of wave 1, wave 3 will be in the price range of 20 before retracing to 23 as wave 4 as shown in the chart.
The series of measures and relief packages Beijing has come up with in the recent months to buttress the economy and property sector will not be able to deter the price drop of FXI, at least not in the foreseeable future.
In this alternate count, we have a simple wave i, wave ii and wave iii as depicted in the graph and an expanded triangle as wave iv that consumes considerable amount of time and form compared to wave ii.
That set the stage for an extended wave v with the target price in the range of 18-20. Wave 2 has reached 50% of the retracement of wave 1 in this extended wave v.. Whether wave 2 is a simple zigzag or flat remains to be seen. Using 1.618 of wave 1, wave 3 will be in the price range of 20 before retracing to 23 as wave 4 as shown in the chart.
The series of measures and relief packages Beijing has come up with in the recent months to buttress the economy and property sector will not be able to deter the price drop of FXI, at least not in the foreseeable future.