These are two core position stocks that I have featured numerous times. FXP is a short play on China, as they try to deal with inflation and hike interest rate, EDZ is somewhat related as we stray from the crowd think of emerging markets, EDZ is a short play on Emerging markets as I believe they are and will continue to do everything they can to slow the flow of hot money/inflation which is the main export of QE2.
Both of these trades look very good for the long haul and I want to have at least one of them in my portfolio.
EDZ with a big bullish descending wedge-as I've mentioned, these wedges lately have been building bases, it seems this one is complete as it is breaking out of it today-an ideal spot to add the trade. The implied target is $60.
Here's the daily 3C-look at the leading positive divergence in the base area!
A 15 min chart gives us a closer view of the base, note increased accumulation every EDZ hit support
The 1 min chart is showing confirmation today on the breakout.
FXP
Here's FXP's daily 3C chart, same wedge, same base forming, same breakout of the base.
The 30 min 3C chart shows activity inside the base, negative divergences to pull price back down from the highs where they accumulate at the lows, a breakout follows. It's now in a leading positive divergence.
The 1 min chart is confirming the breakout and move up.
I love both of these trades and now is a good time I think to look at them seriously.
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