When we looked at the China A50 index (CN50) last year (December 21 2023, see chart below), we got the best buy entry possible on more than 1 year span:
Our long-term Target at the time of 13000 is almost hit but it now time to re-evaluate our perspective as the index not only hit the top of its almost 2-year Falling Wedge but more importantly made contact...
CHN50 - 24h expiry
There is no clear indication that the upward move is coming to an end.
Although we remain bullish overall, a correction is possible with plenty of room to move lower without impacting the trend higher.
Risk/Reward would be poor to call a buy from current levels.
A move through 12550 will confirm the bullish momentum.
The measured move...
China has been on an uptrend.
It broke the resend resistance.
Dropped back on it and it up for today.
It seems likely we move more up to the next level.
Fundamentals & Sentiment
ChinaA50:
The pop higher yesterday didn't have any viable reason behind it. The data came out mixed.
Technical & Other
Followed the price action trigger to guess how the market interpreted the data.
USD:
The trade is meant to be very short-term, while USD paired with index shouldn't be that sensitive to forex volatility. Hence, the...
The China A50 index (CN50) is giving us excellent return on our bullish position since our last post (December 21 2023, see chart below), even though it hasn't reached the 13000 Target:
It is time to take profits on this amazing rally as the index has hit and got rejected twice already on the 1W MA50 (blue trend-line). This is a sign of weak momentum and as...
After falling since Feb 21, it seems it's on the way to some recovery completing the 5th Elliot wave. For any long position I would wait to break the wedge upwards.
CHN50 - 24h expiry
The bearish engulfing candle on the 4 hour chart is negative for sentiment.
The primary trend remains bearish.
Short term momentum is bearish.
We look for losses to be extended today.
A break of the recent low at 11356 should result in a further move lower.
We look to Sell a break of 11345 (stop at 11465)
Our profit targets will be 11045...
As China ushers in the Year of the Wood Dragon this weekend, government-backed initiatives are breathing life into the country's struggling stock market.
The Fall: A Crisis of Confidence
In the lead-up to the Chinese New Year, Chinese stocks faced significant headwinds, prompting a decline that wiped out nearly $2 trillion in market value. Several factors...
CHN50 - 24h expiry
There is no indication that the rally is coming to an end.
The RSI is trending higher.
Although we remain bullish overall, a correction is possible with plenty of room to move lower without impacting the trend higher.
Risk/Reward would be poor to call a buy from current levels.
A move through 11500 will confirm the bullish momentum.
We...
As posted 2 days ago, the Chinese market was forming a bullish triangle, for the first time in months. Today, it broke above it. This breakout could move their market much higher.
CHN50 - 24h expiry
There is no indication that the selloff is coming to an end.
Further downside is expected.
Short term RSI is moving lower.
Risk/Reward would be poor to call a sell from current levels.
A move through 11000 will confirm the bearish momentum.
We look to Sell at 11100 (stop at 11200)
Our profit targets will be 10850 and 10800
Resistance:...
China markets struggling to stay out of bear market territory. They were the first to correct
that led to many markets hitting resistance and chop.
China has now formed a solid bear Flag. A drop here could have broader global market implications.
Always important to listen to the message of the markets and let them tell you what is going on
instead of guessing....
waiting for a short setup against China A50 and a long setup on Nikkei 225.
Let'see how it goes.
Traders who did the Long Japan/ Short China trades last year earned a lot. Will this combo still be the most beneficial trade for equity traders?
Currency
these 2 economies are gonna cut their rate.
The difference is China's gonna cut their rate regardless of...
