How best to play the Chinese revival?
HangSeng and Hangseng Tech setting up as peak Flags
Disclaimer: Nothing discussed or written in The Technical Take is a BUY or SELL recommendation.
As the Chinese government gears up to increase the fiscal stimulus to revive its economy, its stock market has responded with equal vigor.
After falling close to 50% from its 2021 February peak, its primary index jumped ~50% within a month.
It is currently making a healthy pullback to its key short-term MAs and getting tighter by the day.
This is a very healthy price action.
And a breakout could soon follow.
But as a trader/investor from India, how do you play this?
We can do that via the two ETFs HNGSNGBEES and MAHKTECH that mirror the major stock market indices in Hong Kong, the HSI and the HSTECH. HSI is the Nifty50 equivalent while HSTECH is the tech-focussed index.
Both the ETFs are very much set up as PBAs and a PBC entry can open up soon.
While both are likely to do well, I like the Tech ETF better as its prior uptrend is more.
PS: I am invested and biased. None of this is financial advice.
That’s all for today.
See you soon…
Ciao