GXC trade ideas
Support your sell reason with RSIIs China index oversold?
I do not think so from both short term fundamental reason as well as trend analysis.
I expect the price to fall through the inner bullish trend line (dotted) and heads much further south.
To help support my chart, I use Relative Strength Indicator (RSI) to determine if it is oversold. You can see that it still has some room to move down.
To exacerbate the situation , now China is facing a double whammy - Coronavirus without a cure as yet and now the deadly bird flu has returned. Read article here
This will add more panic and fear to the locals and in fact many people worldwide as well.
When China equity market opens tomorrow, imagine all the locals holding on to their local stocks that has been suspended, I believe many would gap down or plunge down hard , driving the index down as well.
Be extra cautious now in your trading/investment !
