Rocket Arc Pattern Completing in FXI China While We Focus on Greece

You’re missing breaking news and a “Rocket Arc” Pattern collapsing price to support in China if you’re hyper-focused on news from Greece recently – which is understandable.

Let’s break through the clutter and highlight this price pattern which reflects a stellar price rise and the current collapse – or “return to earth” part of the Rocket Arc Pattern.

Here’s China’s FXI ETF (Daily Chart):

“Three Rocket Arc Price Patterns for Overseas ETFs EWG, EWS, and FXI”

In fact, today’s update post builds on the prior “Here’s a Rocket Arc forming in FXI” post.

Today’s post can be retitled “The Rocket Arc I mentioned Earlier Just Completed in FXI!”

Anyway, take a moment to read the prior post and how the other related country ETFs have performed.

For FXI China, we’re seeing headline risk and instability which has resulted initially in a “Rocket Arc” pattern in April that led to the current “Return to Earth” or liquidation/collapse phase we’re seeing right now.

While FXI highlights an ideal example of the Rocket Arc pattern, traders perhaps are most interested in what to do right now.

Let’s zoom-up to the Weekly Chart to highlight why the current pivot level – $44.00 per share – is critical.

FXI China 25 Weekly Chart:

The Rocket Arc pattern began with lift-off from the $44.00 resistance level earlier in 2015 and we pick up today’s analysis with the return-to-earth portion – back to the launchpad – at $44.00 per share.

With all the headlines (this post focuses on charts, not news/headlines specifically), be sure to focus on the $44.00 simple price pivot reference level for planning or managing any trades.

We look to key support/pivot levels to enter “support bounce” trades, making FXI an aggressive buy-entry candidate (tight stop) here or else as a “breakdown/reversal” candidate in the event sellers continue to pressure the price lower.

A breakdown under $44.00 triggers an agressive reversal short-sale entry which could lead to a play down toward the $41.00 level or lower.

As traders, our goal isn’t to predict but to join into the price movement generated by the winning side – be it bull or bear.

Price will move “away from” $44.00 per share’s key pivot and we can trade the price movement from this level.

Either way, whether you’re studying the “Rocket Arc” Pattern, or looking to trade/manage a position in China’s popular ETF FXI, focus your attention on the $44.00 per share pivot level right here.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).