When I think about tech stocks outside the U.S., my mind goes straight to Asia — and especially China.
After a strong first-half rally, these names have been taking a breather, giving the market a chance to reset — and a fresh opportunity for buyers to step in.
What you’re looking at here is the China Technology ETF $CQQQ, retracing right back to former resistance around the 50 level.
This is where market memory comes into play.
A lot of shares changed hands here. When price revisits those levels, former resistance often turns into support. That’s what we know as polarity.
What makes this zone even more compelling is the confluence: former highs lining up with the anchored VWAP from the all-time highs.
This chart looks like many others we’ve bought in the past — textbook reversals, clean breakouts, and now a swift pullback.
If China is going to bounce, I can’t think of a more logical place for it to start.
Alfonso De Pablos, CMT
Director of Research, All Star Charts
Breakout Multiplier + Project X: Free Bonus
Join Breakout Multiplier (Annual) and get a FREE quarterly membership to Project X, Steve Strazza’s new fusion-analysis tool launching in January.
Project X combines fundamentals, earnings sentiment, trend, and momentum to spot emerging leaders early.
