By Bryan McCormick
The iShares FTSE/Xinhua China 25 Index exchange-traded fund has broken down rather badly today.
On the FXI daily chart there is an irregularly shaped bearish "head and shoulders" pattern that became active this morning. The trigger was when price crossed the "neckline" of the formation, drawn on the chart in red, at the $40.25 area.
The downside potential for the pattern, if it is completed, is to the $36 area near the 52-week lows. A move back above $40.25 would render it inactive.
(Click to enlarge)
Disclosure: No positions