Ascending Wedge Signals KWEB Breakout Coming
China stocks have been a 'no touch' for years. Underperformers since 2021, money has rotated into U.S. equities. The China stock market has dealt with a crackdown from their government, a multi-year recession and a trade war. However, the charts say this is about to change.
The daily chart of the KraneShares CSI China Internet ETF (KWEB) has an ascending wedge pattern. This is extremely bullish. Should the KWEB break above $38, the pattern would trigger. Upside is likely to $55/share.
Overall, the catalyst could be a trade deal with China as signals are mounting that China is emerging from its recession.
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