Chinese ADR's Are Falling, Watch The Buy Level For This Chinese Stock
Nicholas Santiago | Aug 15, 2018 02:43AM ET
This morning, most of the leading Chinese ADR's are coming under heavy selling pressure. As you all know, the Shanghai Indexes (Chinese stock market) has been falling lower since late January 2018. Trade wars and increased tariffs have certainly hurt the Chinese economy, but there have been other problems in China that have caused the markets and leading stocks to decline.
Today, leading Chinese ADR's such as Alibaba (NYSE:BABA), Baidu Inc (NASDAQ:BIDU), YY Inc Class A (NASDAQ:YY), Jd.Com Inc Adr (NASDAQ:JD), and most others are declining lower. The one Chinese ADR that I have my eye on is China Southern Airlines Co Ltd ADR (NYSE:ZNH). Now understand, this stock usually trades very light volume, so it is important to really find a level that will be supported by the institutional crowd. The support area for ZNH stock that looks solid will be around the $27.00 level. This area is where the stock broke out in January 2017. Prior break-out and pivot levels will usually serve as excellent support when retested.
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