One of the newsletters I follow recently observed that this ETF of Chinese stocks is breaking out, and this chart looks like a confirmation.

The ETF is a new one, as this commentary from Business Week suggests. It follows the larger stocks in China, seeking results that correspond generally to the performance of the CSI 300 Index – the 300 largest and most liquid stocks in the China.

As the chart shows, over the last year or so the CSI 300 has been a pretty crappy investment. On June 12 last year, the index hit its five year peak at 5335. Until the beginning of this year, it was on a steady slide. It established at about 25 in April, and didn’t break that level until the week just past – on high volume, I might add.

I’m sorry that the chart covers so much territory, since it makes it difficult to read the particulars. However, I wanted it to cover the last 18 months. The key thing to notice, however, is that last Monday there was a breakout, which continued every day of the week. You will also note that the Ichimoku Cloud, which seems to give the investor a glimpse into future support or resistance to the stock. In this case, the cloud seems to suggest that China is a good place to be – at least in the short term.

I was sufficiently impressed that on Friday I picked up a bit of ASHR. Does that mean I’m recommending that you buy or sell this ETF? No way, José and Josefina!