IZZ IShares China Large Cap ETF

Please visit IShares Australia website for PDS/FACT SHEET etc. if you wish. I believe it’s base currency is USD and not Aussie $. Fair amount of bearish talk at some media outlets about stocks in Chinese market. Is this the case with IZZ ? Not as far as what I see on the first weekly chart.

Are we seeing a BREAKOUT  with IZZ ? My word YES. Will it succeed ? Who knows to be frank. But a BREAKOUT is a BREAKOUT until proven otherwise. I would maintain my bullish bias with this China top 50 ETF (IZZ) until such time that I see an end of week (EOW) close below the 40 period SMA in Red. Current value of the SMA is $49.69 as can be seen.

OBV at the second window is still flat. Relative strength of IZZ compared with XAO is still negative meaning IZZ is underperforming XAO.

All IZZ needs is to have a follow through on this bullish built up over the coming weeks. This BREAKOUT is treated BULLISH unless it fails. Therefore it gives me a signal to take  PnF counts where available. Two counts are taken one representing a medium time horizon and the other long time horizon as shown on the chart. Count one will be negated on a close below $40.35 and count two on a close below $46.00.

Since we are closely correlated with China, it will be interesting to see how XAO reacts to this breakout ?

Click on charts to enlarge please.

izzweekly12052017

izzpnf12052017

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