After hitting the low 50's twice and being met with high volume selling, the FXI looks to be heading down to the bottom of a mutli-year range at ~29. Where the FXI is headed after that is unknown. We could see a spring form at the bottom of the range then a move up, or a continuation of the down move to the lows of 2008. I think that a continuation of the move to ~20 is the most likely scenario.
Comment:
FXI looks ready to break the 61.8 fib. Target is $29, then 19.40. I think FXI will reach 19.40 easily. The way Xi is handling the trade talks FXI might go to 10.
Comment:
The Chinese stocks are moving to the true value of their economy. I would not be surprised to see FXI around $7 in a few weeks.