Why Hong Kong Has My Attention

This might be one of my favorite long-term charts around the globe. Today we're looking at Hong Kong, specifically the MSCI Hong Kong Index. iShares has a liquid ETF - $EWH which makes it nice and convenient for us to participate if we want to.

So here's why I'm interested. The weekly chart is trying to break out above multi-year resistance levels. The question now is whether or not it can hold this breakout and shoot for those 2007 highs that are still almost 20% away.

Here's the weekly bar chart. This resistance has been clean for 5 years and the next level is staring at us right in the face:

The risk we're taking is that this breakout doesn't hold and it rolls back over below all of that supply. But I suppose that's always the risk on a breakout play right? The difference here is that resistance levels are rarely this clean.

In the case of Hong Kong, we want to see the 20 and change level hold for us to continue to be interested in the space. To the upside, we're targeting those 2007 highs above 24. For you guys that prefer dividend-adjusted charts, $EWH is already sitting at all-time highs. Either way, we find this name attractive and it definitely has my attention.