Hang Seng Index (HSI), Xinhua China 25 ETF (FXI) and Shanghai (SSEC) chart analysis

FXI is right now sitting on a 20 month trend line at $42.67

Actually FXI tracks Hang Seng Index (HSI) pretty well, so you can analyze HSI to understand FXI.  The chart below doesn't reflect most recent price move of HSI to 22900 level which is around 38.2% retracement level of its most recent rally.  However, HSI still has room to drop to reach its 20 month up trend line as FXI did today.  It's at 22555 level which is 1.5% - 2% lower than current level.

After my last post, Shanghai index has broken the resistance at 2850 level from the recent consolidation at, this bodes well for FXI and Hang Seng.  It is now going back to retest the 2850 level as support.