China Small Caps : Rise in sight? (HAO) – 22/06/17

We integrate into our Watchlist the China Small Cap ETF (HAO), composed of approximately 350 Chinese mid caps stocks, including 20% of industrials, 14% of technology and 15% of consumer goods. The good performance of the Chinese economy in recent months, coupled with a general trend in ramping up into the value chain, should increase the attractiveness of these mid size corporates

  • The weekly chart shows that a bullish breakout is in process, with moving averages trending upward. The break out of the $26 level would imply a significant added potential to the Index.

HAO, weekly charts :

  • The monthly chart shows an interesting configuration, with an ongoing crossing of the long term moving averages. At the same time, MACD is moving towards the zero line, which came as a confirmation. The index looks very close to move into a positive momentum. The risk/return of this ETF seems attractive.

HAO, monthly charts :