Dead cat bouncing ?
China unveils fresh stimulus to boost its ailing economy by cutting reserve requirement ratio and lowering interest rate, following the footsteps of Federal Reserve, on Sep 24.
China and Hong Kong market rallied after the announcement. I re-looked at the chart of FXI and contemplated that FXI should be now in the 'b' wave of a larger W-X-Y (double zigzag) pattern as depicted in the chart.
This 'b' wave can be a flat or a double three, but based on its structure, it could most likely turn out to be a contracting triangle. Once this 'b' wave structure is done, FXI should be heading south again to complete the 'Y' wave. Target price : 10 USD.
China and Hong Kong market rallied after the announcement. I re-looked at the chart of FXI and contemplated that FXI should be now in the 'b' wave of a larger W-X-Y (double zigzag) pattern as depicted in the chart.
This 'b' wave can be a flat or a double three, but based on its structure, it could most likely turn out to be a contracting triangle. Once this 'b' wave structure is done, FXI should be heading south again to complete the 'Y' wave. Target price : 10 USD.
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