New York, July 31st (TradersHuddle.com) – Shares of iShares FTSE/Xinhua China 25 Index Fund (NYSE:FXI) are trading very close to calculated resistance at $43.41 with the current price action closing at just $42.36 placing the stock near levels that make it difficult to buy.
iShares FTSE/Xinhua China 25 Index Fund (NYSE:FXI) is an ETF that seeks to reflect the price and yield performance of the FTSE/Xinhua China 25 Index. The underlying index represents blue chip stocks and includes the largest 25 Chinese companies trading on the Hong Kong Stock Exchange.
iShares FTSE/Xinhua China 25’s current stock range is defined by current calculated support defined at $40.87 and by the resistance level at $43.41, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don’t have a clear entry point for iShares FTSE/Xinhua China 25, as the stock is well above support, however, as the stock pulls back towards $40.87 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $43.41 then traders will get an opportunity to enter iShares FTSE/Xinhua China 25 stock by establishing a position as the stock moves to a higher range.