I Shares China Large Cap ETF

The I Shares China Large Cap ETF (FXI) is an exchange-traded fund focused on the largest and most liquid companies in the Chinese market, primarily listed on the Hong Kong Stock Exchange. These companies mainly come from the finance, energy, telecommunications, and consumer goods sectors. Some of the most prominent holdings include:

• Tencent Holdings
• China Mobile
• Industrial and Commercial Bank of China
• China Construction Bank

As seen in the attached chart, an X-ABCD harmonic pattern has developed, indicating a potential turning point. The chart shows a clear downtrend represented by the green trendline. A break above this trendline could signal that the ETF may extend toward the 0.618 Fibonacci level (Rule Target 2).

• Trend Break: Once the price breaks above the green trendline, this could be interpreted as a strong buy signal, with a potential move toward the 0.618 Fibonacci level.
• 0.618 Fibonacci Level: This area lies around the 40 USD mark and is considered a probable target in harmonic trading after a trend break.
• Potential Price Movement: If the ETF reaches this resistance level, global political developments, particularly between China and the West, could further amplify or limit this movement.