China's tanking again, lol.
I guess I should have paid attention to the easy play. Was so hung up on CPI that I forgot all about China even though PDD is near the top of my watch list.
Oh well. Can't chase it now.
I know there's a lot of bears following me, a lot of time if I feel bearish and the US market is melting up I short a foreign ETF or in this case...
China is probably the hardest market to predict because their govt exerts their will on the market, whether it be up or down.
I shorted PDD again today because I think it goes down and retests the bottom next week. We'll see.
Indicators are oversold, but chart pattern says one more down day.
Taking the safe approach and just leaving profits in PDD puts, cashing out the original investment to lock in profits.
Volume could be seen at 1yr high. Would will see a trend reversal before this quarter ends ? High likely as price could be seen supporting at the 50ema too.
Really like the way Alibaba is bottoming here. Not only have we broken the steep downtrend which has held price down for the last year, but we have broken horizontal resistance at $120 while holding above a new daily uptrend line. Today is the first break above the 200dma since Feb 2021, which is another encouraging sign. Should we hold this breakout above $120 on...
China has been performing well of late as capital flows towards the geography with the most accommodative central bank and increased liquidity. After a solid rally from the mid-May lows were seeing the HK50 print a series of lower lows and highs, although the wicks are getting longer suggesting there is still solid buying pressure into weakness. We see the price...
2 weeks ago we discussed why the HSI:HSI rebound rally would be slowed by profit takers (). The choppiness in the index we saw for the past 2 weeks was also due to the discrepancy between the China and US equity market. While the SSE Composite SSE:000001 still held above 3300 level, the US equity indexes all broke through the 2022-May low due to the increasing...
✅HANG_SENG_INDEX is trading in a downtrend
And the pair is now retesting a resistance cluster
Of the falling and horizontal levels
So I think that we will see the price go down
In bearish continuation move
SHORT🔥
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While my view toward HSI remains bullish since the end of May after the index has decisively surged through its major resistance of the 50 days moving average, one need be aware that the index has entered a choppy zone due to the emerging selling pressure from profit taking of short term traders. That said, one should avoid breakout buying as higher price might...
Aussie is trying to wake up as RBA started hiking rates while China is going out of lockdowns in June, so seems like wave C is already in place, unless this is still a higher degree leg A from the 0.7661 highs. Well, at this stage it's too early to confirm any new long-term bottom, but at least in the short-term we should be aware of more upside after recently...
Comment :
1) FundFlow+ indicator - BEAR signal is here, a short-term retracement is expected to be happen soon
2) Tricol+ indicator - still strong/no retailer bar (turquoise)
Support & Resistance :
S : 21737.94 +/- the index would enter correction if it fall below today's low
DISCLAIMER:
Analysis above SOLELY for case study purpose, not a PROFESSIONAL...
The answer is usually an explosive move to the upside. The monthly RSI is close to being in oversold territory, so if someone wants to pick up some Chinese tech stocks, I think now is probably a good time to do so despite all the regulatory risks.
Good luck with your trades
Last week we discussed the scenario of Hong Kong/China equity rebound due to the political environment change in China. HSI did end up close above the May open, creating a hammer candle in the monthly chart, and stood atop the 50 days moving average. Both showed strong bullishness from the chart perspective (Last week note here: )
As a continuation of the rebound...
Hang Seng (HSI) broke and closed today above the 1D MA50 (blue trend-line) for the first time since February 2021. Despite the weakness since early April, the index hasn't yet broken or even come close to the March 16 low, indicating that we have a long-term Support. That is reasonable technically as that level (18250) is a 6 year Support formed by the February 12...
