The iShares MSCI China ETF (MCHI) has gained nearly 20% this week, bolstered by Beijing announcing 澳洲幸运5官方开奖结果体彩网: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官方开奖结果体彩网:real-estate downturn and slumping consumer confidence, which has caused 澳洲幸运5官方开奖结果体彩网:deflationary pressures to weigh down the world’s second-🌳largest economy.

Below, we take a closer look at the ETF’s 澳洲幸运5官方开奖结果体彩网: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官方开奖结果体彩网: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官方开奖结果体彩网:downtrend line in late April. Such a formation raises the prosect of a 澳洲幸运5官方开奖结果体彩网:double bottom, a W-like chart pattern that forms after an ex꧑tended decline and indicates a potential trend reversal. 

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官方开奖结果体彩网:trading volume since late January, pointing to 澳洲幸运5官方开奖结果体彩网: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, inveﷺstors should monitor three overhead levels on ℱthe ETF’s chart.

The first sits around $56, where the fund’s price finds a 澳洲幸运5官方开奖结果体彩网:confluence of resistance from multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs from May 2019 to January last year and the 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官方开奖结果体彩网:lock in profits near 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官方开奖结果体彩网:swing high, which closely aligns with a series of 澳洲幸运5官方开奖结果体彩网:price action from mid-2020 to mid-2021.

Monitor This Important Pullback Level

During 澳洲幸运5官方开奖结果体彩网: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官方开奖结果体彩网:horizontal line linking the May 2022 澳洲幸运5官方开奖结果体彩网:swing low and May 2024 swing high. A failure to hold above this important area could see the fund retest its 2024♔ lows.

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