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.
EWH sees its Stochastic Oscillator ascends from oversold territory
On December 24, 2024, the Stochastic Oscillator for EWH moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EWH advanced for three days, in of 294 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 December 10, 2024. 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 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 13, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on EWH as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for EWH turned negative on December 31, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
EWH 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.
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 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.
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