Monday, December 28, 2009

EWH - Hong Kong iShares

just noticed the well-defined range that has developed over the past few months:

then I pulled up a 10 year chart with 'volume by price' bars. the abnormally large bar in the 15/16 area tells you that a great amount of trading activity has occurred right in the price range that has prevailed since October.

EWH has climbed all the way back to the base of the 2007 blowoff and the failed support levels of 2008. this is a critical juncture for the Hong Kong market and by extension the entire international stock pump complex.

if EWH can break out of the current range, then it and likely other international symbols are in good position to trade higher for some time to come. but if that fails and the fund moves lower from here things could get tough all over, and quick.