China ETF has a steep upwardly-sloped trend line and a bullish signal
Since the global selloff ended in late December/early January, China’s market has moved sharply higher. The Shanghai Composite is up just shy of 25% since January 2 while the S&P 500 is up 17.4% during that same time period. One particular ETF that tracks China’s overall market has performed even better. The Deutsche X-Trackers Harvest CSI 300 China A-shares ETF (Amex: ASHR) is up 33.3% from the close on January 2.
At the post selloff high earlier in April, the ASHR was up over 40% from that January low. The ETF has pulled back a little in recent weeks, but that could be providing investors with an opportunity. The pullback brought ASHR down to the 50-day moving average and to a trend line that connects the lows from January and February. The trend line and the moving average are right on top of one another right now.
Another thing that happened with the recent pullback is that the daily stochastic readings moved in to oversold territory for the first time since January and the indicators just made a bullish crossover on April 30.
The Tickeron AI Trend Prediction tool generated a bullish signal on ASHR on April 29 and the prediction showed a confidence level of 86%. The signal calls for a gain of at least 4% over the next month and 69% of previous predictions on the ETF have been successful.
ASHR's RSI Oscillator peaks and leaves overbought zone
The 10-day RSI Oscillator for ASHR moved out of overbought territory on December 10, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 20 instances where the indicator moved out of the overbought zone. In of the 20 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
ASHR moved below its 50-day moving average on December 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ASHR crossed bearishly below the 50-day moving average on November 25, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ASHR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ASHR broke above its upper Bollinger Band on December 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ASHR entered a downward trend on December 06, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 09, 2024. You may want to consider a long position or call options on ASHR as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ASHR just turned positive on December 09, 2024. Looking at past instances where ASHR's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ASHR advanced for three days, in of 271 cases, the price rose further within the following month. The odds of a continued upward trend are .
Industry description
General Information
Category PacificAsiaexJapanStk