Chinese stocks break descending trend

Note: This section contains information in English only.
Source: Dukascopy Bank SA


For most of 2023, as the USA tightened their policy and set export sanctions on China, the Chinese government continued to ease its policy and weakened the Yuan and the Chinese stocks. As a result, the Chinese top 50 stock index declined in a channel down pattern. The decline has ended due to a fundamental and a technical reason.

From the fundamental side the Chinese government has strengthened the Chinese Yuan, which has caused a return to investment to China. From a technical perspective, the index continued to find support in the 12,500.00 mark and the 12,300.00/12,400.00 range, before starting a surge, which managed to break the 2023 channel down pattern and the 50 and 200-day simple moving averages. Most recently, the stocks were testing the resistance of the 13,380.00/13,520.00 zone.

A move above 13,520.00 is expected to encounter resistance in the various 2023 high level zones that have acted as support and resistance during the early part of the year.

On the other hand, a decline is set to look for support in the 13,000.00 mark and the 200-day SMA, the 50-day SMA near 12,700.00, before reaching the 12,300.00/12,400.00 range.
Back to articles

Actual Topics

Tue, 08 Aug 2023 11:20:48 GMT

EUR/NOK is squeezed in

Since the middle of July, the EUR/NOK currency exchange rate has been squeezed in between the support range at 11.10/11.20 and resistance of the 200-day simple moving average near 11.30. A decline below 11.10 is highly likely set to look for support in the 11.00 mark and other round levels. Note that the 10.80, 10.60 and 10.40 levels have acted

Tue, 01 Aug 2023 19:14:15 GMT

EUR/JPY tests high level

In general, the surge of the USD/JPY has been caused by the weakness of the Japanese Yen. Namely, the Bank of Japan has kept its monetary policy easy, as it does not have to fight inflation. The US Federal Reserve has hiked interest rates and increased demand for the USD. The equation is simple. However, it is not the

Subscribe to "Fundamental Analysis" feed

Subscribe
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.