Is The Chinese Stock Market Rebound Ending?

The rebound in the Chinese stock market could be coming to an end. As you can see on the following charts, the iShares China Large-Cap ETF FXI is close to a possible resistance level.

This could put a top on the price.

In December and November, there was support for FXI around the $35.20 level. This means there was a large number of buyers willing to pay that price for new shares. And each time FXI fell to it, it reversed and rallied.

But now FXI is trading at a lower price.

Many of the investors who paid $35.20 now regret their decision to buy. Some will decide to sell, but they don’t want to take a loss. As a result, they place their sell orders at their buying price.

If there are enough of these sell orders, it will create a resistance level. This could keep the shares from moving higher.

(Click on image to enlarge)


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