Chinese Stock Market Sends Warning As Waterfall Selloff Continues
Chris Kimble | Oct 25, 2022 02:25PM ET
Global equity markets have come under heavy volatility this year, with leading markets like the US, China, and Europe declining swiftly.
China’s Hang Seng index, in particular, has sounded alarm bells, and we have been highlighting the importance of its bearish pattern for several months. You can read our latest on the topic here.
Today, we look at a monthly chart of Hang Seng to provide an update.
As you can see, the Hang Seng index broke its 30-year trend line support at (1). This was when we first began warning investors of a deeper selloff.
Selling has accelerated since the breakdown in what appears to be a waterfall move. The next support comes into play at 12,500, which is well below current prices.
This doesn’t bode well for Chinese stocks or the broader global equities market. In my humble opinion, investors should take note of this — it is worrisome that the largest country in the world is breaking down. Stay tuned.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.