05-05-2025
Charts show this China tech ETF could be a better bet than U.S. tech, says Katie Stockton
Chinese technology stocks have seen a volatile start to 2025, with substantial short-term swings in both directions from ETF proxies like the KraneShares CSI China Internet Fund (KWEB) . The choppy price action year-to-date is within a constructive long-term context, noting a long-term base has developed for KWEB. This is quite different from U.S. technology stocks, which have trended higher since 2023 and appear relatively overextended. KWEB established a cyclical uptrend after a base breakout late last year. A long-term uptrend line near $28 defines the gradual uptrend. This trendline was successfully tested during the latest bout of volatility, and our intermediate-term indicators have improved with the rally that is now underway. The weekly stochastics have an upturn to suggest that there is an increased likelihood that KWEB can make additional upside progress within the context of its intermediate-term trading range. The 50-day (~10-week) moving average (MA) is an initial hurdle on the chart, above which the top of the range shows resistance near $39. In the ratio of KWEB to the S & P 500 Index (SPX) , a long-term basing phase has a hold, as in absolute terms. This reflects relative stabilization over the past year for Chinese technology stocks versus the U.S. following a sharp phase of underperformance in 2023. The 12-month MAs point higher, suggesting additional outperformance from KWEB over the next year. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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