FXI Bounces off 20 day moving average to focus wedge resistance
FXI 36.93 bullish – Bounces off 20 day moving average to focus wedge resistance
FXI rebounded strongly off 34.32 (September 29, 2015 low) at rising wedge support to break above the 20 day moving average, extending gains to 36.99 (September 21/October 2, 2015 highs). A clean break above there would complete a bullish weekly reversal and prime bulls for 37.55 (near the 50 day moving average). Above lies the 37.94 range high (September 17, 2015). A decisive push through there would confirm basing and offer scope for 40.64 near 38.2% of the 52.85/32.80 fall. The 35.85 area (October 2, 2015 low and 20 day moving average) should hold dips. If the bears are able to break below there, that would suggest further range-bound action within the wedge.
Outlook:
Daily: bullish
Weekly: neutral
FXI rebounded strongly off 34.32 (September 29, 2015 low) at rising wedge support to break above the 20 day moving average, extending gains to 36.99 (September 21/October 2, 2015 highs). A clean break above there would complete a bullish weekly reversal and prime bulls for 37.55 (near the 50 day moving average). Above lies the 37.94 range high (September 17, 2015). A decisive push through there would confirm basing and offer scope for 40.64 near 38.2% of the 52.85/32.80 fall. The 35.85 area (October 2, 2015 low and 20 day moving average) should hold dips. If the bears are able to break below there, that would suggest further range-bound action within the wedge.
Outlook:
Daily: bullish
Weekly: neutral
