China Devours Energy:
When wondering if this commodity charge will continue, there are a myriad of ways to gauge that. Today we will focus on China. They are very large consumers of commodities and if the region’s charts are looking chippper that could be confirmation. Below is the daily chart of the FXI and Monday started the week in fine form nearly breaking above a double bottom pivot jumping almost 2%. This is strong follow-through after last week gained 5%, its second strongest WEEKLY gain in more than four months. On its WEEKLY chart, last week broke above a bull flag pivot of 27 which carries a measured move to 35. Notice too since May that the 50 WEEK SMA is starting to flatten out and how it ignored the doji candle the week ending 8/23. On the MONTHLY chart, there is still technical damage to repair but it has risen 5 of the last 7 months and looks similar to the time period, with that type of positive PRICE action in 2016 after a bullish morning star recorded in March that year that kickstarted a robust run. Deja vu here? Notice how unsurprisingly round number theory played a role with a bearish shooting star at the very round 50 number in February 2021 and the bids that arrived at the 20 figure in October 2022.