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.
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