IShares China Large-Cap ETF (FXI) Under Pressure, Watch This Trade Level
The iShares China Large-Cap ETF (FXI) has been under some selling pressure for the past 2-months. The FXI holdings include Alibaba Group Holdings Ltd (BABA), JD.Com Inc (JD), and many other large-cap Chinese stocks. The FXI topped out on February 17th, 2021 at $54.52 a share. Since that high pivot, the FXI has slipped below it’s 50-day moving average and is now trading at $46.60 a share. The FXI is still trading just above it’s an important 200-day moving average, but this moving average is now minor support. A weekly close below this key moving average will likely signal another decline in the FXI in the near term.
The next key support level for the FXI will be around the $43.00 area. This support area is where the FXI has a major retrace level from the March 2020 low to the February 2021 top. This area is also where the 200 and 100-week moving averages are located. These major moving averages should serve as excellent support when tested. This is an area where the institutional crowd will likely defend the FXI in the near term. I would look to be a buyer in the FXI around this major support area.
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