Been such a fan, waiting for so long, but I think the technical outlook for China Equities is not looking too good.
Three fails
Breakdown of the TDST puts it in Bearish primary trend mode.
MACD is bearish
VolDiv shows some accumulation
Some downside, highly probable.
Target at 66/67
then see how...
for those who love China equites!
China A50 index ( CN50 ), a measure of the Chinese onshore market that keeps track of 50 of the biggest Chinese A-share companies listed on the Shenzhen and Shanghai stock exchanges, broke a major upward trend that had been in place since 2016.
The technical picture sees the A50 index currently dominated by a descending channel pattern, having fallen 42% from its...
It has been a really long time since GXC was updated. Previously, an imminent breakout was expected, but it failed, in an epic fashion, to find itself the bottom support of the triangle.
Has it bottomed out and ready for a bounce?
Early game, but just want to put in the observation that it might bounce for the next attempt to breakout of the triangle. The weeks...
For some time, GXC had been flagged as potential for upside... massive upside. Within a triangle, it had already gained over 10% since it was flagged.
This week, it appears to be breaking out... out of the triangle that it has been coiling in.
Obvious that the weekly and daily chart technical indicators are bullish, or crossing over bullishly. Candlesticks are...
Previously been highlighting China, particularly as Chian equites have been misunderstood, maligned, and assumed to have downside due to their tough COVID-19 strategies.
As expected, GXC launched with a gap up. However, this gap up did not translate further into a gap and run, but instead stalled. In view of the overall technical picture, it appears may have...
As previously described, yes, the GXC ETF appears to have found its footing to launch.
The weekly chart has clocked a higher low, and this week's candlestick is a nice bullish one with a long-ish trailing tail at the bottom, which is a bullish indication.
The daily chart shows the week closing at a gap resistance, and above the MA band. Technical indicators are...
After an intra-week V shape recovery, with a strong weekly candle, the GXC is now range bound (as seen in the daily chart) attempting to breakout of the range. The Daily technicals are bullish and supportive, as the weekly technicals are somewhat coiling.
We might have to wait a bit more on this one... Needs to break clean of 92.50.
Price target for NTES is $84.
All the Chinese stocks are primed for a strong recovery after China`s top administrative authority said it would work to stabilize the stock market and boost economic growth!
Traders are expecting the Chinese government would support the stock market like the FED did in the US.
As expected previously, GXC (China equities) #epicfail, GXC went down and continues to do so for yet another week probably. You can see that the SHCOMP (Shanghai Exchange) pushed further with people closing positions over the rather long holiday.
Waiting for the Buy Zone soon...
On 6 Jan, I posted:
"GXC is not done... not yet.
Another 8-10% downside perhaps."
Thereafter, GXC surprised me with a run up and a higher low, breaking above the daily 55EMA twice. Only to fail the 55EMA on Friday, and following through today (Monday) with a deep gap down -3% at mid-day.
This is very bearish, and is likely to have a lwoer low with a spike down...
Just doing some research and then realized that the GXC (China ETF) has a 10 year historical cycle pattern. In this pattern, it appears to be at a bottoming out period.
Just sharing an observation from the technical cycle aspects. Other qualifiers suggest a similar indication (not discussed herein).
What you also can observe is that there is a peak about 2/3...
Weekly GXC chart looks bearish with technicals and candlestick ending with a sandwich like stack with a lower low and lower close.
The downside support target appears to be quite a way off, about 10% down from current.
Daily chart (right) is at a previously marked Buy Zone, but MACD is pushing down more. Price now has a gap resistance to close. Let's see if it...
The GXC Weekly chart is about ready to break out and take off... just did a best case projection.
This is on the back that the Evergrande saga endgame is delayed, which I think would likely be so... into 2022.
Watch the next two weeks or so, needs to break out of trend line/channel and clear the gap resistance area.
US China trade war resolution more forcefully impacts Shanghai Composite and Shenzhen Component, but Hang Seng should also see some gains. Moreover, we have seen a bit more progress in the negotiations apparently with tech transfers, tech war. Let's see if it pans out though. For more, check out www.anthonylaurence.wordpress.com
Short-term short, but overall I'm still positive on this index. That said, this can turn ugly very, very, very quickly as the Shenzhen is the most speculative index in Asia for sure, maybe even the world. Definitely the highest volatility. So, if we do see a short-term pullback, this could quickly be followed by 5 percent gains on the day that the US and China...
