One of the worst-performing emerging market ETFs this year, iShares FTSE China 25 (NYSEArca: FXI), rebounded more than 2% in early U.S. trading Wednesday after a noted technical analyst predicted a strong rally in Chinese stocks.

The China ETF is down about 10% year to date after the government unveiled new measures designed to cool property prices. Investors are also worried about a potential slowdown in the world’s second-largest economy as well as more central-bank tightening measures.

Earlier this week, JP Morgan (NYSE: JPM) cut its view on China to underweight and recommended bearish bets against the country’s largest banks. [China Downgraded by JP Morgan After ETF Falls 12%]

However, the Shanghai Composite on Wednesday rallied nearly 3% for its largest gain in over two months after Tom DeMark at Market Studies LLC predicted the index will rally as much as 28% by September, Bloomberg News reports.

In late 2012, DeMark accurately forecasted a rebound in China’s equity market. At the time, he said everyone was negative on Chinese stocks and the bears were exhausted. [ETFs to Access China’s New Growth Phase]

Now, Demark says China will continue its climb following the recent pullback.

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