FXP- UltraShort China 25 Update

FXP was a trade idea on Feb 29th (long) as FXP staged a minor shakeout below support with good 3C support, essentially it was buying price weakness with 3C underlying strength, this is what it looked like then...

After a decent move over the next 4 days, on March 6th I said, 

" I'm not crazy about the gap it created today.  I'll be keeping an eye on this one as I still like it, but this market has been diligent about filling gaps."

On March 7th I posted the following...

"FXP is a long idea that many members already took and made good money, I would prefer to see a pullback to the 10-day moving average in yellow as an entry point, otherwise, a breakout above the recent highs would be the second option, these are market dependent."

Today, we are at the area of the 10-day moving average...

 Here's the Crossover screen, FXP is very close to a bullish/long crossover, the 10-day moving average is in yellow in the price window.

 However there is a question as to a gap left open below in the $22.50 area, this could be a bullish breakaway gap as FXP was breaking out of a base and a pullback that far, which would be below the 22 day moving average seems excessive.

 The long term 3C chart shows accumulation during the base and a leading positive divergence just before FXP broke out of the base. Long term this looks like it has many more up legs in it.

In the short term on the 1 min chart, we are starting to see positive divergences as FXP is in the area of the 10-day moving average. I would prefer to see this divergence strengthen and migrate to the 2 and 5 min charts before entering, however you could also consider a phased entry, leaving enough room in your risk management to allow for a gap fill to the $22.40 area 9we are at $23.13 right now, so it's not a huge amount of risk for a leveraged ETF like this).

I'll keep an eye on it today and see if this divergence grows stronger and migrates, we are in the target area, all we need for a high probability entry is a stronger 3C reading (not to say this one isn't positive and looking good, but the stronger the reading, the better the probabilities).

Again, I would maybe set some price alerts and keep this one on the radar.