The iShares MSCI China ETF (MCHI) has gained nearly 20% this week, bolstered by Beijing announcing 澳洲幸运5开奖号码历史查询:significant stimulus measures in recent days to revive the country's economy.

Chinese stocks have come under pressure in recent years due to the country’s steep 澳洲幸运5开奖号码历史查询:real-estate downturn and slumping consumer confidence, which has caused 澳洲幸运5开奖号码历史查询:deflationary pressures toꦫ weigh down the wo♑rld’s second-largest economy.

Below, we take a closer look at the ETF’s 澳洲幸运5开奖号码历史查询:weekly chart and use technical analysis to identify important price levels to watch out for amid the fund’s recent 澳洲幸运5开奖号码历史查询:stimulus-driven moves.

Potential Double Bottom

After forming two distinct lows at comparable levels on the chart between October 2022 and January this year, the MCHI ETF’s price broke above a multi-year 澳洲幸运5开奖号码历史查询:downtrend line in late April. Such a formation raises the prosect of a 澳洲幸运5开奖号码历史查询:double bottom, a 𓄧W-like chart pattern that forms after an extended decline and indicates a potential trend reverꦏsal. 

More recently, the fund retraced within a flag to the respected 50-week moving average (MA) before staging a decisive breakout this week on the highest weekly 澳洲幸运5开奖号码历史查询:trading volume since late January, pointing to 澳洲幸运5开奖号码历史查询:institutional investors participating in the bullish move.

The ETF was up 1.8% at $51.01 in🦋 mid-afternoon trading Friday, following up on a 9% rise the previous session. The fund has gained 20% this week.

Key Overhead Chart Levels to Watch

Looking ahead, investors s﷽hould monitor three overhead l𓃲evels on the ETF’s chart.

The first sits around $56, where the fund’s price finds a 澳洲幸运5开奖号码历史查询:confluence of resistance from multiple 澳洲幸运5开奖号码历史查询:peaks and troughs from May 2019 to January last year and ꦦthe downward sloping 200-week MA.

A breakout above this level would confirm a double bottom pattern on the ETF’s chart that could see bulls drive a move up to the $65 area, a region where investors could look to 澳洲幸运5开奖号码历史查询:lock in profits ꦬಌnear a trendline joining comparable trading levels between late 2017 and early 2022.

A longer-term bullish uptrend could see the ETF rally to $77, where it would likely encounter selling pressure near the prominent January 2018 澳洲幸运5开奖号码历史查询:swing high, which closely aligns with a series of 澳洲幸运5开奖号码历史查询:price action from mid-2020 to mid-2021.

Monitor This Important Pullback Level

During 澳洲幸运5开奖号码历史查询:pullbacks, investors should closely monitor the $47 level, a location on the chart where investors who prefer not to chase breakouts may look for buying opportunities near a 澳洲幸运5开奖号码历史查询:horizontal line linking the May 2022 澳洲幸运5开奖号码历史查询:swing low and May 2024 swing high. A failure ﷺto hold above this important area could see the fund retest its 2024 lows.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.