There were no changes to the KraneShares Dynamic China Rotation Model this week. We have seen continued movement to the upside for the KraneShares MSCI China Environment Index ETF (KGRN).
There were no changes to the KraneShares Dynamic China Rotation Model this week, as each of the holdings continued to maintain sufficient relative strength against the Chinese fixed income representative.
The past week has seen continued movement to the upside for the KraneShares MSCI China Environment Index ETF KGRN, which pushed higher last Friday to give its second consecutive buy signal in June at $46.50, before rising to $47. This fund saw a sharp drawdown beginning in late February that ran through most of May, but has moved significantly higher in recent weeks to arrive at a recent fund score posting of 4.83, besting the average emerging market equity fund (3.59) as well as the average Chinese equity fund (2.58). This favorable fund score is also paired with a positive 2.83 score direction, which provides further indication of the consistent recent appreciation of KGRN. The overall technical picture remains sound, however, the recent improvement has led the fund into overbought territory so those looking to add exposure may consider easing in at current levels or waiting for a pullback/normalization of the trading band. Initial support can be found on the default chart at $43.50. Note that the fund is currently positioned at near-term resistance at $47. Further overhead resistance from here may be seen at the all-time high of $55 from February.
