China ETF FXI on the Rise

By Sam Collins,

Shutterstock photo

iShares FTSE/Xinhua China 25 Index ETF (NYSE: FXI ) - This exchange-traded fund (ETF) tracks the FTSE China 25 Index by investing at least 90% of its assets in securities of 25 of the largest and most liquid Chinese companies.

Since May 2009, the index has been trading in a broad bullish channel with a bottom around $41 and top at just above $48.

Last week, it broke above a near-term downtrend line within the channel on high volume. The break created several gaps, which could close, but before that the index will most likely jump to its major resistance line at above $48.

Longer-term investors may wish to purchase the ETF, but traders might go for the FXI May 46 Calls for $1.15 with a target of $3.

Trade of the Day - iShares FTSE/Xinhua China 25 Index ETF (NYSE: FXI) Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: ETF , FXI

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