on Shanghai Stock Exchange the market has recently dropped with a gap. now it recovers and most-likely the gap will be closed. what is important here is the fact that the last candle close before the gap gives a strong resistance for the market. so even in case of a 100% recovery, the market can drop just after the gap will be filled.
@VasilyPonomarev, I am with you. I guess, the central banks intervened to early. So, from my opinion, we saw a "virus panic dump" and central bank "too early intervention". From here the market is going to decide and I would expect that the Chinese vacations will be prolonged and in this case, we would see that the SSE would move back to the support region. So, this setup is truely new driven. If China moves back to "work" on Monday, the market would in a first step see this as a positive sign and fill the gap (FOMO gap close).
Chimbarosa
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@Chimbarosa, not "new driven" it is "news driven" (small difference)
VasilyTrader
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@Chimbarosa thank you for your opinion! Yes I immediately get that you meant “news driven” :)