Chinese Market reaches 50% recoveryWhat kind of virus?
Chart prepared for Quantum Economics daily QE newsletter.
CHINA50 trade ideas
2 sides of a coinAmong the 3 major China indices, HSI, SHCOMP and CN50, it is the latter that dropped the
most from its peak. It has fallen more than 10% from 14695 in mid Jan this year.
With the coronavirus that caused much uncertainty in the market, all indices globally, oil, stocks , etc have been impacted as well.
If you know how to short-sell , then you probably have made a handsome profits. For those who are late at buying a piece of China, then this is an opportunity to get in.
I will wait a while more as the virus news is still ongoing and people are fearful, driving bond prices up, gold price up and yen as well.
I have indicated two possible support level, 12618 and 12936 that I think it might revisit before a rebound. Of course, it might be worse than this, nobody knows.
Depending on what was your entry price, some of you may want to take profits and buy back at a later time.
Trade safely, always use a SL and employ risk and capital management .
China´s turn - Will we see a good year ? i think its china´s turn in 2020
but lets start it with a swing to ATH resistance
The MA 50/100 is very stable
RSI is 56,5 ( perfect )
Broke and closed over resistance line yesterday
Open trade : 14438
Set TP at : 14830
Set SL at : 14330
Risk reward : 3.83
Disclaimer :
I have this stock my self
Remember always to do your own analysis
This is NOT an investment advice
CN50 longterm trendline resisting strongly on Coronavirus fearChinese indexes, Hang Seng Index ( TVC:HSI ) and Strait Times Index ( TVC:STI ) have been tumbling today on fear of Coronavirus spreading to other parts of China and more countries.
We are reminded of SARS in 2003.
The Wuhan flu virus belongs to the same family of coronaviruses that causes SARS, which killed nearly 800 people globally during a 2002-2003 outbreak that also started in China.
Technicals in CN50 do not look good initially already. With possibility of coronavirus outspread, this might add to more bearish bias.
Do you know your trading style ?According to psychologists in the 1920s, there are 3 different ways that people learn.
1)Visual: a visually-dominant learner absorbs and retains information better when it is presented in, for example, pictures, diagrams and charts .
2)Auditory: an auditory-dominant learner prefers listening to what is being presented. He or she responds best to voices , for example, in a lecture or group discussion. Hearing his own voice repeating something back to a tutor or trainer is also helpful.
3)Kinesthetic: a kinesthetic-dominant learner prefers a physical experience . She likes a "hands-on" approach and responds well to being able to touch or feel an object or learning
While we may have a combination of all 3 styles, there is one style that stands out, that dominates amongst the three. I classify myself more of a VK learner as I like to plot chart and prefer hands on approach (ie. live trading to gain the understanding).
I would classify Auditory as someone who prefers podcasts rather than videos as the latter consists of both visual and audio involved. So, if you like watching youtube channels on trading, ask yourself do you need to see what the author is showing you or are you comfortable just listening to the content .
When you understand your own style over time, you can better choose the right resources to back up your learning. Also, it helps you to better formulate your ideas to others as well.
Hope this is helpful.
Trade safely. GBU.
China 50 is at a point of major resistance - 3 times in 5 years
Confluence
Weekly - At a major point of resistance
Daily - False breakout of a ascending triangle formation
Daily - Forming of three black crows
4hours - Double Top
Concerns
Whether this down move is a part of re-tracement before heading upwards or a breakdown confirmation on the false breakout?
Trading Entry
Regarding this concern, I will trade on the breakdown of the double bottom and take a lower RtoR ratio of 1.38 instead of 1.99 and if the market happens to break down on this formation, good for us, we will ride it down.
Take 50% risk off when price hits the lower bound of ascending triangle formation.
Entry: 14285.2
Stop: 14735.4
First profit target: 13665.8
Risk to Reward: 1.38
Institutional Supply for the CHN50Dear Traders,
Due to demand, I'll upload a few chart ideas beyond the forex markets. Besides the previous post about the DAX, the CHN50 is also looking good for a weekly pullback from Weekly and Daily Supply, both breaking a clean bullish trend to the downside.
The same gameplan is used as for the DAX, which is to show patience and see price-action move a bit higher towards the end of the week before a solid correction in the start of the new year. The Daily chart can be used nicely to spot reversal zones inside of this weekly supply zone, besides that the intra-day charts such as the 1hour and 4hour chart will be applied to create a full breakdown for the CHN50.
Have a good one.
Flood Gate is Open NowThere are still some uncertainty over US - China trade agreement especially in intellectual property, technology transfer and the human rights issue in Hong Kong. These are challenges that would take a longer time to iron out but eventually some form of agreement would be reached, imo.
As seen on the 4H chart, price action is on a bullish trend with minor correction on the way. This would be opportunity for buyers who missed earlier.
1. It breaks out of 14099 resistance level and continue to charge higher.
2. It corrects towards the bullish trend line (green) and then rebound.
Note - if price breaks down the bullish trend line, buying ceases till we examine the price action further. Though this can possibly happen but I doubt the probability of it happening now.
Too big to fail - CN50www.caixinglobal.com
Billions of dollars will start to flow into this index , allowing more foreign investors to participate in it. This is good news for all as news of China opening up its capital market is moving in leaps and bounds.
Some of us may missed the bottom when it was at 10,000 in 2018 but no point crying over spilt milk. If the weekly top at 14,835 is to be hit again and beyond, then, that is another 800+ points to profit from.
See you at the TOP
