The KraneShares CSI China Internet ETF (KWEB) holds names like JD.com (JD) and Baidu (BIDU) , which have suffered big declines the past year. Could an out-of-favor country and industry stage a rally? Let's check the charts and indicators.
In the daily bar chart of KWEB, below, we can see a serious decline in the past 12 months. The shares were down from $75 to just $20 in about 10 months. Prices have turned from down to sideways the past three months despite the bearish news background.
KWEB is still trading below the declining 50-day moving average line but it has been testing this line several times in the past four months. A strong close above this line could happen very soon.
Trading volume was very heavy in March and this may be a clue that the low is in place. The On-Balance-Volume (OBV) line shows a gain from mid-March telling us that there has been a shift from aggressive selling to aggressive buying. The 12-day price momentum study has been improving since March and is a technical positive.