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Chart of the Day: FXI Flashes 2 Buy Signals

Chart of the Day: FXI Flashes 2 Buy Signals

My team of traders tell me the biggest winner from the recent U.S.- North Korea Summit in Singapore won’t be one of the two participating countries.

From a trading perspective, it could be China.

My team points out that this sets up a potential trade in the iShares China Large-Cap ETF (NYSE: FXI) which tracks the Chinese stock market.

Since a decline in February, prices have been consolidating in an increasingly narrow range.

The stock recently tested the upward-sloping trend line and successfully held above the trend line.

There’s another reason to be bullish…

As you can see on the chart, the stochastic indicators are also signaling a buy.

Here’s the best way to play this bullish move according to my team…

The August 2017 $48 calls which saw heavy volume after the summit. That means professional traders are paying attention to that particular option.

The calls cost about $1 today, and my team believes they could triple in value within the next month or so.

© Chart courtesy of Today’s Profits. All rights reserved.