CHINAA50CFD trade ideas
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Unlike the US that has no choice but keep on printing billions of dollars, China has recognised its stratospheric debt problems and are doing something about it. The case of Evergrande is a classic case where investors and government officials are watching like a hawk to see if Chinese Government will intervene. The bankruptcy of Evergrande if it happens is catastrophic as it involves many financial institutions as well.
It will cause a dent in the financial system and cause panic in the market which could lead to a major sell off, something that they do not want to see. The recent Chinese data has also been disappointing, failing to calm the nerves of its loyal fans - both institutional and retail investors.
While money has been pumped in of late to help prop up the stock market, little changes have been effected todate with popular stocks like Alibaba, Meituan , Tencent still heading south, dampening the mood of the retail buyers.
But some stocks are hopeful , offering a glimpse of hope that the bottom is near or have reached and I will be covering some of them separately. Watch out for it !
China A50 Index - not as bearish as many thinkLonger term weekly chart of China A50 stock index. Looks to be a fairly textbook pullback (abc) to support levels which were prior resistance in 2015 and 2019 before breakout higher. Given RSI also bottoming it looks like the support level will hold and enable another leg higher over coming 12-24 months.
Chinese Index again at SupportHello, CN50 is currently retesting a mutli year horizontal S/R Zone and diagonal Support Zone again and i think it´s a good Opportunity to Long it (for some Chinese Exposure).
China is not a democracy which makes it kinda risky (CCP crushed Alibaba for example) but i believe if China is playing their cards well it will at some point be the strongest ecconomy worldwide and one may want to get some exposure beside that "little" risk.
CN50 seems a good choice for a widely diversified Portfolio for some Chinese Exposure.
Posted a CN50 Idea some month´s ago (see related) and the basic Idea seems still legit.
DYOR and please leave a like =)
Weak Position long term viewThe CN50USD in a range bound moving lower to previously low.
The triple top and price position tends to range bound,
The overall outlook it's heading east, move lower than 12000 mark. if does happens, longer terms months ahead price could drop near extreme bottom, usually take more than a year or two to do that.
Ichimuko: 2022 Stock index worth investing in | regionIchimuko: 2022 Stock index worth investing in | region
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Bullish ChinaBottoming seems almost complete after alow amplitude impulse from the bottom into a light correction. Chinese economy has suffered tighter conditions than the US and has made space to loosen, all the while the US gets to grips with what has been coming for a long time now. Stocks like BABA seem to have found a bottom and Evergrande/RE news has also 'Bottomed'. Black swans not withstanding I think this could go very well into the year.
