KWEB
Kraneshares China Internet ETF | KWEB | Long at $26.00The "beginnings" of a change in the downward trend of China's tech stock market may be starting to unfold. The price of Kraneshares China Internet ETF AMEX:KWEB has finally reconnected with my selected simple moving average (SMA) which often means further price consolidation or future price breakout from the overall mean. I'm not saying this will happen immediately and this particular SMA likes to be tested to "fake out" buyers and sellers (sometimes over months or years). Plus, there are price gaps in the low BER:20S on the daily chart that often get filled before a run. But for the early birds out there, like myself, AMEX:KWEB at $26.00 is in a personal buy zone as a starter position.
Target #1 = $30.00
Target #2 = $37.00
Target #3 = $49.00
Target #4 = $100.00 (very long-term view...)
FXI - iShares China Large-Cap ETF... FXI stock is a strong buy due to China's rapid economic growth, diverse portfolio of leading companies, and potential for high returns. Investing in FXI offers exposure to China's expanding market.
9988.HK
Alibaba Group Holding Limited 9.72%
0700.HK
Tencent Holdings Limited 8.73%
3690.HK
Meituan 8.09%
00939
00939 7.08%
01398
01398 4.74%
03988
03988 4.26%
9999.HK
NetEase, Inc. 4.00%
1810.HK
Xiaomi Corporation 3.77%
9618.HK
JD.com, Inc. 3.73%
01211
01211 3.51%
FXI stock is a strong buy because while the US and Europe have experienced an incredible bull run, China's market hasn't seen the same gains. This offers a unique opportunity for potential growth and high returns.
HSI - KWEB - FXI - YINN --- China UptrendChart is self explantory. Bottomline I think we came to the end of 4 year long bear market in China. If they don`t blow up the Taiwan issue, coast is clear.
Econ gathering on 14-16 July, CCP will explain it reforms. I don`t buy what they sell but they would most likely provde liquidity to the market pre and post this economic forum which they do every 5 years. Even for a small pop, this could be a nice play.
BABA - PDD - JD - Tencent...ideally I play with YINN but all the names will benefit eventually.
THE MOST Bullish chart you will see today!Is of the Shanghai composite.
A beautiful HVF is nearing pattern triggering,.
Early accumulation is probably warranted!
Isn't now the most bearish FUD, over the Chinese economic miracle you have ever seen in a lifetime.
The chart is telling a different story of consolidation of its extreme growth and continuation of it's remarkable rise.
A quadrupling on the index means some of the underling securities will yield life changing gains.
I haven't done any due diligence on individual names
But an #ETF to keep an eye on is #KWEB
Which is a basket of Chinese internet stocks.
Opening (IRA): KWEB May 17th 24 Monied Covered CallLooking to get a fill on a monied covered call in KWEB (IVR/IV 12/33.2) while I wait around for some (or any) vol to show itself in the broader market. That IVR isn't great, but I'm going small so that I can potentially add at more favorable strikes/share cost bases should an opportunity present itself.
It's pre-market, so bid/ask is somewhat wide on both the shares and the short call, but I'm looking to buy a one lot and sell a -75 delta call against for around 26.09 in order to emulate the delta metrics of a 25 delta short put, have built-in short call defense, and to take advantage of IV skew on the call side (it's 39.4% at the 24 call strike; 32.4% at the 24 put).
On a side note, the on margin variant of a Plain Jane short put isn't paying spectacularly from a dollar and cents standpoint: the May 17th 24 short put is paying .37 at the mid, which isn't anything to write home about, but that would be on a BPE of 6.72 (5.51% ROC at max; 2.75% at 50% max; 23.63 break even) should you want to go the standard short put/acquire/cover route.
Break Even/Cost Basis in Shares/Buying Power Effect: 23.09
Max Profit: .91 ($91)
ROC at Max: 3.49%
ROC at 50% max: 1.74%
In all likelihood, I'll have to "penny up" if I don't get a fill for 23.09 ... .
$PDD - The Appeal 🔥 NASDAQ:PDD appealing setup - remaining subdued throughout the day, setting the stage for a potentially stronger push. If it surpasses $82.83, we can expect a move towards $84, followed by a possible pullback before attempting to test the 61.8% retracement level at $88.45 (gap fill). PDD's showing promise with the recent distribution of $697 million USD in deep discounts to generate consumer demand. The extended rally is also fueled by China stimulus hopes ( NYSE:BABA , NASDAQ:JD and major Chinese tickers are witnessing the same effect).
Chinese Internet Stocks - KWEBnext leg up possibly starts very soon. Looking like an inverted head and shoulders bottoming pattern here, and with daily and weekly bullish divergences on RSI, I would think continuation up is likely.
Over 34.5 would be a big step forward and could take it to the 50 area again.
Good luck!
$JD Potential IHS still intact Hey guys, after a big down day today, I wanted to take a look at the chart again. The inverse head and shoulders is still intact. I really want to see the RSI trendline keep that incline slope.
If it doesn’t hold RSI tendline, we may head all the way to oversold conditions, which could be several dollars below here if we don’t get a significant rally. Also, It could potentially be a sign that the selling pressure is still present.
Everything here is just an opinion, and made for entertainment purposes. This is in no way, shape or form any any type of financial advice or advice in general. This is for entertainment purposes only.
KWEBI believe, for sometime KWEB should take a pause for a brief time:
1) The current price is right at the resistance zone on the weekly chart ($31.xy to $32.nm) - We can see many times in the past the price has turned back from these levels.
2) 50 ema on weekly chart is right at the resistance, working as double resistance for the price move.
3) Dragon fly doji at the resistance means zone of strong supply.
4) The rally has been a swift and strong, now it is a few weeks old for next round of healthy run it should take a pause.
Bull:
1) RSI is healthy.
2) A support is at $28-$29ish
3) Standard Deviation is higher than its previous peak and heading higher
4) Once the pause is over, next pause should be at around $38.50ish
Conclusion: Overall view on KWEB is positive. In a short term the KWEB should take a pause, possibly fall a bit, before starting to run again. If the drama around possibility of US ban on Chinese stocks ends and the Zero COVID policy is lifted, then 2023 will be the year of Chinese Stocks.
PS: I am new to analysis. So, do not forget to do your own research, make your own decision, you are responsible for your trades. I welcome inputs to improve my analysis. So, please share your knowledge and guide me.
KWEB: UNIQUE LONG TERM OPPORTUNITY?KWEB, Chinese internet ETF
Chinese techs have been in a bear market since February 2021, with the price of KWEB unable to break above the long trend line (in blue).
Kweb has found a bottom in March 2022.
Is Kweb bullish? Is it the end of the bear market for Chinese tech stocks?
Here is everything you need to know before making a decision:
- Currently the price is trying to create a bottoming base as we have seen higher lows (light black line) since March and the bearish trend line (blue) was broken.
- I see an ascending triangle with the top horizontal line of the triangle at 32.71. We tried to break this line 3 times but failed to maintain above. A sustainable break above 32.71 would be considered as bullish.
- We could backtest the rising black line of the ascending triangle before starting a bullish trend, but not sure.
- Mind the small gap around 28 that could also be filled.
- We're above the ichimoku cloud, which shows that the trend is changing. The lagging span (in green) still have to confirm the change of trend by crossing the bearish blue trend line.
- China in quantitative easing mode as western economies are tightening.
I'm long KWEB with a long term view. My buying zone is between 30 and 27.74 with a stop at 26.40 .
Trade safe.
WATCH $BABABullish
Fundamental
- Inflation Macro environment / fear sentiment
- Funds Accumulation
- Positive PE
- Negative PEG ( seems leaning towards a value stock )
- Positive P/FCF
- Weak Sector / Industry / not Leader
- Very competitive online retail market
Technical
- Momentum Theory Indicator - break out downtrend / bottomed out
- Price action formation ( falling wedge )
- Broke out downward trend line and retest
- Price above POC
- Price below major S/R level
- Huge volume spike!
- MACD divergence
Entry idea
- Entry idea was based on few confluences
- Price above major S/R level
- Price above fibo level
- Price above 200 MA
Stop loss set on previous low or POC level
" STEPS BY STEPS, BASE CAMP TO BASE CAMP. I WILL SUMMIT"
Cheers and happy trading!
6/26/22 BABAAlibaba Group Holdings Ltd. ( NYSE:BABA )
Sector: Retail Trade (Internet Retail)
Market Capitalization: $309.183B
Current Price: $117.62
Breakout Price: $120.00
Breakdown Price: $85.00
Buy Zone (Top/Bottom Range): $102.65-$87.00
Sell Zone (Top/Bottom Range): $113.80-$124.95
Price Target: $128.40-$131.70 (1st), $167.50-$171.10 (2nd), $15.70-$14.00 (3rd)
Estimated Duration to Target: 29-31d (1st), 117-124d (2nd), 340-356d (3rd)
Contract of Interest: $BABA 7/15/22 120c, $BABA 10/21/22 130c, $BABA 6/16/23 100p
Trade price as of publish date: $6.47/contract, $11.98/contract, $14.93/contract
6/26/22 PDDPinduoduo Inc. ( NASDAQ:PDD )
Sector: Retail Trade (Internet Retail)
Market Capitalization: $82.667B
Current Price: $65.96
Breakout price: $71.40
Buy Zone (Top/Bottom Range): $55.15-$31.65
Price Target: $94.60-$98.60 (1st), $115.40-$119.30 (2nd)
Estimated Duration to Target: 60-66d (1st), 120-129d (2nd)
Contract of Interest: $PDD 8/19/22 80c, $PDD 10/21/22 90c
Trade price as of publish date: $3.85/contract, $4.50/contract
6/12/22 KWEBKraneShares Trust CSI China Internet ETF ( AMEX:KWEB )
Sector: Miscellaneous (Investment Trusts/Mutual Funds)
Market Capitalization: $--
Current Price: $37.80-$39.60
Breakout price: $32.70
Buy Zone (Top/Bottom Range): $31.60-$26.35
Price Target: $37.80-$39.60
Estimated Duration to Target: 50-53d
Contract of Interest: $KWEB 8/19/22 35c
Trade price as of publish date: $2.38/contract
Long when pullback20th March 2022
KWEB (Chinese internet ETF)
Since China says it will support Chinese IPOs abroad, calls for closure on tech crackdown last week, we can see most Chinese ADR shares shoot up. If KWEB fall below $20, will not be a good sign.
Otherwise, this ETF is good to enter for long term investor. As for trading, long whenever it pull back.
Closed: KWEB March 18th 35C/39P Short Strangle... for a 6.67 debit.
Comments: Took the opportunity to close out this inverted setup while I had the chance to scratch it out. Collected a total of 6.77, (See Post Below), so made a whopping .10 ($10) on it, which is better than a loss. Rank/implied remains decent at 62/53.6, so may re-up tomorrow depending on what underlyings float to the top of my screener.