JICPT| Concerns ease with HSI bouncing from false breakout!
Hello international market traders. Recently, I've published several posts explaining how China's tightened regulation on the education & tech sector caused massive sell-off.
Yesterday, I observed the investors calmed down a bit with Meituan rallied from weekly long-term MA support level as below.
Today, I found more funds came in to buy those who suffered the most in the past 2-3 days, because their valuations become attractive, for example, Tencent rose by 10% today.
From the daily chart, I can see index bounced back and closed above red line zone calculated by measured move of abcd pattern. The quick closing above the zone indicate false breakout. Looking above, the zone of 27513-27859 turned from support zone to resistant zone with MAs coming down. So, the likelihood of formation of impulsive bullish candles to penetrate the zone is slim.
Pay attention to the zone if you're exposed to the Hang Seng Index or tech stocks. Basically, the individual stocks don't perform well with a declined broad market index.
Yesterday, I observed the investors calmed down a bit with Meituan rallied from weekly long-term MA support level as below.
Today, I found more funds came in to buy those who suffered the most in the past 2-3 days, because their valuations become attractive, for example, Tencent rose by 10% today.
From the daily chart, I can see index bounced back and closed above red line zone calculated by measured move of abcd pattern. The quick closing above the zone indicate false breakout. Looking above, the zone of 27513-27859 turned from support zone to resistant zone with MAs coming down. So, the likelihood of formation of impulsive bullish candles to penetrate the zone is slim.
Pay attention to the zone if you're exposed to the Hang Seng Index or tech stocks. Basically, the individual stocks don't perform well with a declined broad market index.
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