This Week’s Chinese Equities 5/16 - 5/20
The Chinese economy shrank more than expected last month due to lockdowns. This caused a slight sell off in chinese markets even though the Chinese government said they would reopen lockdown cities next month.
Chinese Equities have been battered for months. And during this bear market downtrend the chinese equities have been the most negatively effected. Probably do to the seemingly endless lockdowns of chinese cities due to the zero covid policy. Currently the price of the Hang Seng index is at a historically low level. The RSI reading on the monthly candle timeframe is severely overextended on the oversold side of RSI. This is the lowest monthly rsi reading in the history of the Hang Seng index. If you were bullish long term on chinese equities then this would be the best buying opportunity ever on this index based off of the RSI reading. In the past your can see that a RSI reading close to this low reading is usually followed by massive upside where tremendous gains can be made relatively quickly.
The price of the index is currently near a support level that was created from a dip back in 2015. This should be a strong support area for this index. If we drop below this level then it will not be a good look for this index. The short term outlook does not look good for chinese equities. Nor does the long term outlook but with this overextension to the sell side this negative outlook can change quite quickly. If there is any negative news catalyst on china then this melt down could continue further. We need some good news in china for this downtrend to reverse.
$Hang Seng Index (800000.HK)$
Chinese Equities have been battered for months. And during this bear market downtrend the chinese equities have been the most negatively effected. Probably do to the seemingly endless lockdowns of chinese cities due to the zero covid policy. Currently the price of the Hang Seng index is at a historically low level. The RSI reading on the monthly candle timeframe is severely overextended on the oversold side of RSI. This is the lowest monthly rsi reading in the history of the Hang Seng index. If you were bullish long term on chinese equities then this would be the best buying opportunity ever on this index based off of the RSI reading. In the past your can see that a RSI reading close to this low reading is usually followed by massive upside where tremendous gains can be made relatively quickly.
The price of the index is currently near a support level that was created from a dip back in 2015. This should be a strong support area for this index. If we drop below this level then it will not be a good look for this index. The short term outlook does not look good for chinese equities. Nor does the long term outlook but with this overextension to the sell side this negative outlook can change quite quickly. If there is any negative news catalyst on china then this melt down could continue further. We need some good news in china for this downtrend to reverse.
$Hang Seng Index (800000.HK)$
On the mainland China index $SSE Composite Index (000001.SH)$ you can see a very long term wedge pattern. Price is approaching support on this very large wedge formation. With a wedge formation coiling up for this long you can expect a massive move when the price breaks out of this wedge pattern. To the upside or the downside it should be a pretty substantial move. The short term outlook is not good for mainland China shares also. The long term outlook will be even more negative if the price of the SSE index drops below this very long term wedge formation. In the very long term i am bullish on just about everything in china. They have the biggest economy with the biggest population in the world. In the very long term I would expect new all time highs to be made. The question is how lon until we get back up there.
$SSE Composite Index (000001.SH)$
$SSE Composite Index (000001.SH)$
$Hang Seng TECH Index (800700.HK)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$ $Baidu (BIDU.US)$ $BIDU-SW (09888.HK)$ $Bilibili (BILI.US)$ $BILIBILI-W (09626.HK)$ $NIO Inc (NIO.US)$ $NIO-SW (09866.HK)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $JD.com (JD.US)$ $JD-SW (09618.HK)$ $PDD Holdings (PDD.US)$ $Tencent (TCEHY.US)$ $TENCENT (00700.HK)$ $SSEF 500 Index (000100.SH)$
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solo invest : I feel bad for the Chinese companies the past couple years. But when they start climbing it will be good gains. I can’t wait. Come on China
let’s go to the moon!!
SpyderCall OP solo invest : Me too. I wish i would have invested in the past when they were running up massively. Like BABA and BIDU JD PDD all those big boys in china
Dons hobby SpyderCall OP : Spyder
So now would not be the time to start looking into buying Chinese stocks