ISLAND REVERSAL IN CHINESE STOCKS IS A BULLISH PATTERN; IS THIS A BUYING OPPORTUNITY?
By Nigam Arora & Dr. Natasha Arora
In the Morning Capsule, we shared with you that several Chinese stocks were tracing an island reversal after a big drop. From the emails we are receiving, there is significant interest among investors wanting to buy Chinese stocks to take advantage of the big drop.
Please click here for a chart of Hong Kong China Large-Cap ETF (FXI). The chart shows an island reversal.
Here are the key points that will help answer your questions:
- When taking risk into account, as well as valuations, for most investors the best opportunity is likely to be Chinese stocks traded in Hong Kong represented by ETF FXI.
July 28, 2021