Read MoreChina stocks take the lead in Asian markets recovery
"Usually I would stay away from something like this that is so volatile and doesn't really have a strong trend in place," Ari Wald said Tuesday in a "Trading Nation" segment.
Specifically, Wald looked to the FXI, an ETF that charts China's large-cap stocks, which is down more than 20 percent in the past three months.
"Recently the ETF does appear that it's oversold, but the broken uptrend line over the past few years suggests that [investors] should take a pass on this one and look for a better setup elsewhere," added Oppenheimer's chief market technician. Wald pointed out that since the FXI's collapse in 2007 to 2008, the ETF has been trading in a wide, $20 range of $32 on the low end and $52 on the high end. It's currently trading in the middle of that range, at around $41.
The options market is pricing in even more volatility ahead.
"The options market is implying about a 15 percent move either up or down for the FXI by February," Andrew Keene of Keene on the Market said Tuesday on CNBC's "Power Lunch."
And for Keene, the move could result in a massive rally. "I think it could rebound higher." A 15 percent move higher would put the ETF roughly $6 higher than its current price of just under $41 a share. Keene arrives at his 15 percent prediction buy looking at the price of both at the money near dated puts and calls.