Mainland Chinese markets are now in a Downtrend. Both markets were down less than 1% this week, but action remains weak. The Shanghai broke below key support at the 40-WMA on Monday and remains trading near it, while the Shenzhen remains the weaker, trading 11% off 52-week highs and over 4% below the 40-WMA. The markets are in their fourth day of rally attempt, awaiting a follow-through-day
Author: Sambit Mohanty
Global Focus Frontier Long
Global Focus Emerging Long
Mainland Chinese markets are Under Pressure. The Shenzhen and Shanghai had a brutal week, down between 2% and 4% on greater than average weekly volume. Distribution has been rising over the past five weeks, standing at six. We are looking for the 40-WMA (1% away) to hold as support for the Shanghai to remain in uptrend.
Global Focus Emerging Long
Mainland Chinese markets recovered this week, relieving some pressure from the prior week and moving back into a Confirmed Uptrend. The Shanghai market is back at 52-week highs and no distribution was recorded this week. Both the Shanghai and Shenzhen are back above key moving averages, another positive.
