Since my last update, CXSE has been continuing its ranging pattern.
Below is the daily chart of CXSE
I have added another popular indicator – the Parabolic SAR to guide in the TA during times when its not clear who is winning – Bulls or Bears. In this instance it appears we WERE in a downtrend the last few days. I will let the price action play out over the next few days to determine if its a start of an uptrend or continuation of the downtrend
If you look at the holdings of CXSE below
Tencent $TCEHY $700HK is the largest holding by far at 12.25% weightage. This means it has significant influence over how the ETF will play out in terms of price action as well.
If you look at the weekly chart of Tencent,
- it is currently at the 100 EMA level which is the same support as the COVID 19 crash of March 2020 !
- The next earnings call for Tencent is on 16 August 2021. I am expecting another great earnings result for Tencent despite the government interventions as the fundamentals of the business have not been affected.
In view of this, i am still bullish for CXSE over the mid to long term!
Please refer to my post on why CXSE is a great ETF to hold for geographical and sector rotational play.