The significance of Chinese house prices to world markets cannot be overstated. For twenty years China has been powering world growth.
There are many times in the past China has been successful in re-inflating its property market and we think that on the balance of probability, they’ll achieve this again.
Relative to other global equity indices, the iShares China Large-Cap looks to offer value. The risks are high in the short term, however, an opportunity presents for the long-term investor to consider accumulating the IZZ ETF over the next 6 months.
ASX:IZZ is under Algo Engine buy conditions. We expect buying interest to increase within the $55 – $60 price range.
10/5 Traders may wait for the third factor to align, an upturn in the momentum indicators. Watch for the stochastic to move higher or the price action on the main chart to cross above the 10-day average.