We have touched base to this ASX listed CHINA ETF about couple of weeks ago. For PDS as well as further info. on IZZ , please visit IShares website. Our aim here, as always is to look at it’s technicals, in the journey of our TA education, no more. After a magnitude of an advance with this beast, it is well warranted to take some rest ( a tea break perhaps). Whether or not this rest turns out to be distribution or accumulation only time will tell. Our aim is to put our analysis at test and try and find which ( distribution or accumulation) it may be ? After all, TA is nothing more than a wind sock. It is not the silver bullet as some may make it out to be. But it can be a very effective tool to have and being able to use it the way that it should be used helps. Without our own personal bias off course.
To the point now. A potential CLIMATIC ACTION ( Selling Climax) is evident on the 9th of July 2015. Is that for a definite ? No the answer is. We will only know that after the establishment of an AUTOMATIC RALLY which is yet to be confirmed.
My focus now is on this SHORT TERM DAILY CHART. PINK (dashed) DOWN TRENDLINE to be precise. An EOD close above it, would signal a potential end to this short term daily downtrend which is considered a correction of the next time frame up WEEKLY. My measure of the trend in weekly as we all know is the 50 period SMA. That is what determines whether or not IZZ is in a MAJOR UP TREND or not. That is where IZZ had found support on the 9th.So the major trend of IZZ in my book is still UP.
To the present now. We are stuck in between the UP TREND LINE at the bottom in PINK, which extends back more than a year ( Major trend line ) and the down trend line ( medium term ) just mentioned.The major up trend line is also in the vicinity of our 50 period monthly SMA on our Weekly chart ( not shown).
Will we see a violation of the DOWN or the UP TRENDLINE ? In time we will all find out. But, we may see the price action approaching to the where both of these trendlines converge before it’s next move. A further range bound price action.
Also note those thick BLUE SUPPORT & RESISTANCE lines, they may be the two levels confirming decisively, where from here, should they be violated. That is a range between $52.50 ( support) and $60.50 (resistance).
If the analysis is to heavy or doesn’t make sense, feel free to drop me a line by return email or using the contact us on the website
All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell or short sell any financial instrument, nor is it financial advice.
Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.