China Fund (CHN) in New Upmove
I have been "friendly" to the CHN since the beginning of 2006 (see my Jan 10 update @$28), which was about two weeks after it pivoted to the upside off of its December 18 corrective low at 22.50. My work argued then -- and still argues now -- that the CHN is in the midst of an explosive upmove after ending a major corrective period from Jan 2004 (47.85) to Dec 2005 (22.50). Based on my work, -the CHN completed its initial upmove in a new upleg at the Feb 7 high of 31.14, pulled back to 26.55 on March 8, and since then appears to have entered a new upmove that should hurdle the Feb high on the way to test two-year resistance in the vicinity of 34.00/29 - which, if hurdled, will project to 40 in the subsequent weeks and months. At this juncture, only a break of 26.50 will compromise my current outlook.
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