The trend in Chinese equities turned to the downside.
The coronavirus was most likely the straw that broke the camel’s back. It came on the back of trade tensions that China faced with the United States. Both catalysts hit the Chinese economy as the global expansionary cycle reached a very mature stage.
Censorship and disinformation triggered fear during the past few weeks. The reaction to the virus may have been exaggerated as pictures of empty streets and markets in Chinese metropoles circulate around the internet. These pictures reveal a severe hit for the sentiment. Growth in one of the most important global economies will be affected negatively.
The events triggered a violent resolution of the triangle within an (X) wave. Chinese stocks opened roughly 8% lower after the new year’s holidays. Most likely, this was the very first fractal within an intermediate degree zigzag to the downside.
The coronavirus was most likely the straw that broke the camel’s back. It came on the back of trade tensions that China faced with the United States. Both catalysts hit the Chinese economy as the global expansionary cycle reached a very mature stage.
Censorship and disinformation triggered fear during the past few weeks. The reaction to the virus may have been exaggerated as pictures of empty streets and markets in Chinese metropoles circulate around the internet. These pictures reveal a severe hit for the sentiment. Growth in one of the most important global economies will be affected negatively.
The events triggered a violent resolution of the triangle within an (X) wave. Chinese stocks opened roughly 8% lower after the new year’s holidays. Most likely, this was the very first fractal within an intermediate degree zigzag to the downside.