Friday, May 9, 2025
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
Advertisement
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
No Result
View All Result
Home Stock

Can The China Strength Last Week Be Sustained?

admin by admin
September 30, 2024
in Stock
0
Can The China Strength Last Week Be Sustained?
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

China’s Shanghai Composite Index ($SSEC) surged higher last week by roughly 13%, which was one of its largest 1-week gains over the past decade. There were solid economic reasons for the surge as China’s central bank approved measures to accelerate recent sluggish growth. The People’s Bank of China on Tuesday announced plans to lower borrowing costs, inject more funds into the economy, and ease households’ mortgage repayment burdens. Despite these fundamental positives for the China economy, I’d argue that the index remains challenged technically, however, as overhead price resistance and trendline resistance suggest the most difficult levels to overcome remain:

The top price chart shows trendline resistance near 3100 and the most recent price high at 3200, so it’s fair to say that this 3100-3200 range is critical in the near-term. If it holds as resistance, it leaves little upside potential for China stocks from here.

The bottom panel is a 10-day rate of change (ROC) and illustrates that this recent 2-week pop is just about as strong as any over the past 10 years. The black-dotted vertical lines highlight other similar 2-week surges and, in just about every case, the initial rallies weren’t very sustainable.

From a longer-term perspective, though, this is a chart that really bothers me with respect to the Shanghai Composite’s relative performance:

Can we really trust the recent rally? This is nearly 10 years of significant underperformance by the Shanghai Composite. Will last week’s fundamental developments really change China’s long-term relative performance? I don’t know, but I need to see more than one or two weeks of strength to be convinced.

There were many stocks that benefited from this China strength and I discussed some of those and much, much more on my weekly market recap video, “China Stocks EXPLODE Higher.” Check it out and be sure to “Like” the video and “Subscribe” to our channel.

Happy trading!

Tom

Previous Post

Top 5 Canadian Mining Stocks This Week: Silver Elephant Leads with Rise of Over 60 Percent

Next Post

China’s astronauts are aiming to land on the moon by 2030. They now have a new spacesuit to do it

admin

admin

Next Post
China’s astronauts are aiming to land on the moon by 2030. They now have a new spacesuit to do it

China’s astronauts are aiming to land on the moon by 2030. They now have a new spacesuit to do it

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    • Trending
    • Comments
    • Latest
    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    October 28, 2024
    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    October 28, 2024
    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    October 25, 2024
    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    October 25, 2024
    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    0
    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    0
    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    0
    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    0
    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    May 9, 2025
    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    May 9, 2025
    India and Pakistan are both claiming victory after this week’s clashes. Will cooler heads prevail?

    India and Pakistan are both claiming victory after this week’s clashes. Will cooler heads prevail?

    May 9, 2025
    UK’s King Charles lays wreath to mark 80th anniversary of VE Day

    UK’s King Charles lays wreath to mark 80th anniversary of VE Day

    May 9, 2025

    Recent News

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    May 9, 2025
    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    May 9, 2025
    India and Pakistan are both claiming victory after this week’s clashes. Will cooler heads prevail?

    India and Pakistan are both claiming victory after this week’s clashes. Will cooler heads prevail?

    May 9, 2025
    UK’s King Charles lays wreath to mark 80th anniversary of VE Day

    UK’s King Charles lays wreath to mark 80th anniversary of VE Day

    May 9, 2025

    Disclaimer: financemasterynews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Browse by Category

    • Business
    • Investing
    • Stock
    • World-news

    Recent News

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    This American soldier witnessed the Nazi surrender. 80 years later, he’s still happy to be home

    May 9, 2025
    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    China’s Xi hails ‘stable and resilient’ Russia ties as he shows solidarity with Putin in Moscow

    May 9, 2025
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 financemasterynews.com | All Rights Reserved

    No Result
    View All Result

    Copyright © 2025 financemasterynews.com | All Rights Reserved