The Chinese stock market has been volatile in recent years, but there are signs that it is on the verge of a major rebound. The government is implementing a number of reforms that are aimed at boosting economic growth and investor confidence. These reforms include tax cuts, infrastructure spending, and measures to support small and medium-sized businesses.
As a...
Today, we would like to briefly discuss a few underlying trends in China's economy, touching on the subject of unemployment, demographics, and deflation.
Youth unemployment
While the unemployment situation has improved in 2023, youth unemployment (for those aged between 16 and 24) has been a longtime issue in China. Indeed, it has steadily risen since 2018...
My previous analysis of the Hang Seng Index was invalidated. And now I've done a revamp of the wave counts for 2023.
This is the summary:
1. Hang Seng will continue to fall either till Christmas or EOY.
2. Target support, or end of correction, will be 14980-15100. Look out for this support zone.
HK50 has spent much of 2023 in a parallel channel that i am counting as a double two. The market has retraced to the .768 of the impulsive wave A. Wave C is currently unfolding.
HS50 - 24h expiry
Buying pressure from 16228 resulted in prices rejecting the dip.
The current move higher is expected to continue.
The bias is still for lower levels and we look for any gains to be limited.
We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Further downside is expected although we prefer to...
Strong support formed, looking for a break higher with the rest of the world approaching ATHs. It's likely the property sector will likely receive some government support soon which should boost the sentiment.
In this analysis, I talk about how I used Elliott Waves to count the moves of Hang Seng Index from Jan 2018 to 24th Nov 2023.
The main points to take note are these:
1. The corrective move down in 2023 is over.
2. We are still in a minor corrective move down.
3. But a wave 3 up is round the corner and that it will be an explosive one.
4. The risk is low for this...
Looking for turnarounds or pivot points at the rectangles which are projected potential support and resistance zones. Preferred Japanese Candlesticks Patterns for potential pivot points are Harami and Engulfing patterns, but others will be taken into consideration.
Icons are potential price predictions which don't require a pivot point specifically at a rectangle...
So, HSI rallied more than 600 points yesterday ! Wow, it went to a high of 18103 , exceeding the 18,000 price level that I said must sustain above for the rally to continue.
We are currently 186 point down, having recovered much better than this morning with 300 points negative.
The meeting with President Biden and Xi was a good stimulus to the overall market....
From the chart, we can see the orange circle showing a series of multiple lows for the entire 2023. But the last circle in green , dated 1 Nov 23 could be a turning point.
Before we get too excited, a few things need to happen.
1. 1 Nov low was 17110 followed by 17, 193 on 10 Nov - a good sign
2. 6 Nov peak was 17,954 and the next few days has to surpassed...
HK50 consolidated all Friday.
And shows a Bear Trap on Monday Tokyo open.
Huge divergence.
This is a textbook setup.
I wont be surprised if it Goes Up!!!
the detail is shown in the above Idea.
I made this Idea based on Candlestick Analysis and Fibonacci Tool.
buyers are burned in red rectangle (0.5- 0.618 golden level retracement )
therefore we can expect that HSI index decrease step by step to 1.27 F to 1.618 F and Level 2 Is Spring of HSI Exchange.
The HANG SENG INDEX is the main indicator of the overall market performance in Hong Kong.
The index has underperformed the rest of the world since March 2020 and was among the worst performing indices globally from 2020-2022.
In October 2022 however the Index seems to have moved up in a 5 wave structure after having seen quite a freefall from Feb. 2021. This 5...
