DailyPlay – China Internet ETF (KWEB) – October 19th, 2021

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The bullish DailyPlay for Tuesday, October 19th is China Internet ETF (KWEB). KWEB has experienced a 3.82% rally in the last month. 

Technical View

• After a 60% decline from the Feb top, KWEB has formed a double bottom formation
• Technical Score that has improved from its bottom to 2 out of 10 
• 1M Bullish and Neutral 6M trends improved over the past 2 weeks.

Fundamental View

• Chinese gov’t has softened its tone on crackdowns as citizens start to feel the effects
• Evergrande’s fallout has driven a more accommodative monetary policy
• Chinese internet companies are trading at multi-year low valulations

As this is a Debit Spread, look to take profits at 75-100% and cut losses at 50%:

• Take Profit: $5.80 Credit
• Stop Loss: $1.45 Credit

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