CHINA50 trade ideas
A bout of risk off due (again)- Oil, JPY, SPX, Bond yields alignWith the pop above 52.20 on 4h charts this morning Oil has fulfilled criteria for a simple flat a-b-c correction from recent 49+ lows and ready to head lower again shortly
This aligns with other signs for risk off imminently
JPY crosses have rebounded into decent Fib retracement zones
SPX looks to be out of steam and more interestingly China A50 has met Fib retrace and filled New Year gap
Bond yields also looking like they have had their momentary bounce for now and about to head lower s/term
Caveat emptor
cn50 overnight change vs genco opening priceover the last moth, it seems that genco opens according to the cn5's change of price between 4:00 pm when market close and 9:30 am when they open. If cn50 at 9:30 am is higher than at 4:00 pm the earlier day, genco opens up. If it is lower, genco down... usually, although sometimes it is not the case
Confused ?Lost ? Dizzy ? What to do now ?In this 1H chart, you have 2 gaps , one on top and one below; both awaiting to be filled up. The question is WHEN ? I also dunno, haha.
Next, you see the price action is stuck in a sideway move with buy and sell opportunities , if you know how to spot it and trade it. Congrats if you are good at it as you can earn both ways !
So, the million dollar question is - are we to buy or sell now ?
I say wait for the price to break up or break down before making a decision though I am more inclined to breaking up. Why ? Day and 4H chart illustrates that it has broken out of the bearish trend line and China PMI data released yesterday was positive.
CN50 Bullish Continuation!China commerce ministry says production of auto, auto parts have fully resumed! This is china's way of saying that they have defeated the virus and we have moved on, so expect that to be reflected in the data.
CN50 sellsFundamentals:
Economic slowdown in China in view of COVID19
Technicals:
D1 downtrend, breakout of support, price approaching new resistance
FTSE CHINA A50 Possible Price Rebound?Price was within the descending channel for this equity index and lately, china had done very well combating the virus outbreak and it has lower death rate comparing to Italy and thousand have already been recovered where new cases weren't escalating the way it used to like past. This all proves that china is one of a great nation around the world which may prolly rise back first from this global pandemic chaos in the near future. It was the origin of that cruel virus and people have suffered a lot in the past which I believe the virus cases have reached its peak till today and nothing can get more worst if they continue holding this virus within the jar till the vaccine development. The easing of restrictions comes as Hubei reported that new infections dropped to zero on March 19. A dramatic plunge from the height of an epidemic that’s infected around 81,171 Chinese and killed over 3,277 but recovered 73,159 (which is a great achievement) on the date report 2020 March 24. China to lift lockdown over virus epicenter Wuhan on April 8 allowing transportation to resume for the city. All these positive changes in china let me feel that it may help domestic equities to run smoothly in the near weeks or months creating a rebound on the price action for this index. At least for short to mid-term even if it's not an overall reversal it may have probabilities to create new swing highs.
Clearing 12612 resistance for CN50If this level is cleared, then we have a higher chance of seeing it closing the gap (see triangle) which has yet to be filled up.
Think about it , China in a way has to thank Covid-19 as after it has manage to contain the virus issue, it is now becoming the go to expert in terms of medical supplies. That brings jobs and opportunities to the people of China who are now resuming back to work and production are gearing up as well.
trade with caution.
FTSE China A50 Index | FTSE RussellThe Index tracks 50 of the largest and most liquid companies in China. These equities trade on the Hong Kong Stock Exchange (SEHK) and are weighted based on market cap.
Hong Kong's Hang Seng index slid 3.8 per cent and China's Shanghai composite fell three per cent. '£130bn' wiped off FTSE 100 as oil stocks ...
The FTSE China A50 Index is widely viewed as a primary barometer of China's economic performance. It is traded via CFD, ETF and standardised futures ...
The trouble in Chinatown!There's not much interest in the Chinese stock index here on Tradingview but the ChinaA50 is absolutely important for what happens around the globe.
The A50 is in big trouble and more trouble is yet to come in weeks to months. This is just bad news for the rest of the world really.
I'll say no more here - follow some of the price action with me on the 4H.
CHINA is Down Why is China's economy declining? Not because of the new coronavirus, but because of the residents ’mentality of comparison, China has accumulated an economic bubble of two years or more. The emergence of the virus epidemic is just a match that ignites the opportunity for decline
