Trade Idea: FXI (long) Reiteration

Friday this was the only position added, FTSE Xinhua China 25 Index ETF.

From Friday:

Trade IDEA: FXP / FXI (LONG)

Closed FXP trading position long, opened regular size FXI trading position long & FXI Calls

As you can see I added a small call position as well as the FXI equity long to give it some more kick, even though my longer term trade that I like is FXP UltraShort FTSE Xinhua China 25 Index ETF, it clearly looks like FXP is pulling back and FXI should rally.


Here are the charts for FXI once again, it's still in a great looking area for a long position.

 Friday's candle was just short of a bullish Hammer, but with candlesticks as with almost anything on a chart, looking like the textbook isn't always that important, what the candle tells you is, lower prices were rejected Friday on heavier volume, typical of a short term oversold/capitulation event.

As you know, on reversal candles I look for heavier volume than the preceding day, it doesn't have to be huge, just heavier as this is.

 This morning's opening indications leave FXI in a leading positive position, overnight the PBoC will take action on their regularly scheduled Tuesday/Thursday open market operation which may be a catalyst for FXI (these are normal bi-weekly operations usually adjusting liquidity).

 The 3 min chart and a nice positive with the "Igloo and Chimney" price pattern as support was broken with a positive divegrence, a likely head fake move and the place I love to buy as long as there's confirmation like we see above.

The 5 min chart...

The 10 min chart

The 15 min chart, at this point this is far enough out on a 15 min timeframe that I wouldn't normally require any extra leverage as the duration of the trade would likely be swing trade or longer with a positive out this far.

We also have a positive all the way out to 60 mins. 

So considering where FXI is right now and the charts above, I'd be remiss not to reiterate FXI long as an idea you might want to take a look at.