China Large Cap (FXI): Breakout and retest

The iShares China Large Cap ETF (FXI) has a bullish breakout and retest pattern from a 2022 into 2025 cup and handle formation. Holding the zone of the rising 26- and 40-week moving averages (WMAs) from 38.78 down to 37.50, along with the breakout and retest area at 38.15-37.50, would keep the pattern bullish for FXI. The cup and handle pattern supports the case for upside beyond the 61.8% retracement of the February 2021 to January 2024 decline at 41.66 and the early October high at 42.00 toward pattern counts at 46.50 and 54.00. The latter pattern count is near the 2021 peak at 54.52.

Our bullish conviction in FXI would increase on weekly closes above the rising 13-WMA at 40.00.

It would take a break below the 38.78 to 37.50 range to call this bullish setup into question.

This post continues the theme of bullish breakout and retest patterns - they are everywhere.

Chart 1: iShares China Large Cap ETF (FXI): Weekly chart