One global stock market that has an extremely interesting trend is China’s stock market. It is no secret that InvestingHaven’s research team is bullish long term, and loyal readers have followed the trend since last year.
InvestingHaven was among the lonely voice last year to fire an alert to international investors, in the first half of last year, recommending to Watch China Closely As It Was Close To Breaking Out. “Well, we have news for you, China is potentially ready for a big breakout, which would lead to a new bull market.” That was at a time when the Shanghai stock market index was trading 10 percent below today’s level.
A while later, this article featured an exceptional chart suggesting that China’s Stock Market Will Go Much Higher In 2017.
Lately, there was sufficient proof that China’s Stock Market Is In A Perfect Silent Uptrend, Long Term Bullish.
Visibly, China’s stock market is doing great. Readers are asking us how to play a rising stock market in China? Well, apart from a suggestion on a China ETF on the Shanghai Exchange, we have a more specific stock tip: JD.com.
JD.com, symbol JD, trading on the Nasdaq, is a technology company which runs a huge online marketplace in China. As China’s online market keeps on growing and Chinese people are addicted to digital technologies (more so even mobile sites and apps), the outlook of JD is great.
JD is one way to play a rising stock market in China.
The stock’s price chart looks interesting as well. The stock broke out in January of this year, as seen on the chart. It is now trading right below major resistance. This is not an ideal entry point. There is a probability that resistance will be broken to the upside, but a large cap like this ($45 billion market cap) will not move that aggressively. So the most likely scenario is that a retracement will take place which will offer an excellent entry point, provided that China’s stock market remains in a long term uptrend.
If the rally in China accelerates, and JD breaks out above $33, then it would be an immediate buy.