Short-term trend channel forms on Hong Kong ETF
The Hong Kong market has been trending higher since the end of October. Over the last few months, a trend channel has formed on the chart of the iShares MSCI Hong Kong ETF (NYSE: EWH) with a more defined cyclical pattern to it. The lows from early March and late March connect to form the lower rail while the highs from February and April connect to form the upper rail. The ETF has drifted lower from that high earlier in April and the fund is now hitting that lower rail.
We see that the daily stochastic readings reached oversold territory in the last few days and this is the first time they have been oversold since late October. The indicators made a bullish crossover on April 25 which is a possible bullish sign for the EWH.
In addition to the chart, the Tickeron AI Trend Prediction tool generated a bullish signal on the EWH on April 24. That signal showed a confidence level of 86% and it calls for a gain of at least 4% within the next month. Previous predictions on the EWH have been successful 76% of the time.
What is really interesting about the EWH is that it didn’t dip near as much in December as other global indices and ETFs. From October 29 when the EWH hit its low close through December 24, the EWH gained 5.09%. The S&P 500 was down 11.57% during that time period and the Shanghai Composite index was down 2.76%. As a result of not falling as much in December, the EWH has outperformed the S&P and the SSEC over the last six months.
Aroon Indicator for EWH shows an upward move is likely
EWH's Aroon Indicator triggered a bullish signal on August 21, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 190 similar instances where the Aroon Indicator showed a similar pattern. In of the 190 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 09, 2025. You may want to consider a long position or call options on EWH as a result. In of 90 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 EWH just turned positive on September 11, 2025. Looking at past instances where EWH's MACD turned positive, the stock continued to rise in of 52 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 EWH advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EWH moved out of overbought territory on September 12, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EWH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EWH broke above its upper Bollinger Band on September 11, 2025. 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.
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