The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Can The China Strength Last Week Be Sustained?

by admin September 30, 2024
September 30, 2024
Can The China Strength Last Week Be Sustained?

China’s Shanghai Composite Index ($SSEC) surged higher last week by roughly 13%, which was one of its largest 1-week gains over the past decade. There were solid economic reasons for the surge as China’s central bank approved measures to accelerate recent sluggish growth. The People’s Bank of China on Tuesday announced plans to lower borrowing costs, inject more funds into the economy, and ease households’ mortgage repayment burdens. Despite these fundamental positives for the China economy, I’d argue that the index remains challenged technically, however, as overhead price resistance and trendline resistance suggest the most difficult levels to overcome remain:

The top price chart shows trendline resistance near 3100 and the most recent price high at 3200, so it’s fair to say that this 3100-3200 range is critical in the near-term. If it holds as resistance, it leaves little upside potential for China stocks from here.

The bottom panel is a 10-day rate of change (ROC) and illustrates that this recent 2-week pop is just about as strong as any over the past 10 years. The black-dotted vertical lines highlight other similar 2-week surges and, in just about every case, the initial rallies weren’t very sustainable.

From a longer-term perspective, though, this is a chart that really bothers me with respect to the Shanghai Composite’s relative performance:

Can we really trust the recent rally? This is nearly 10 years of significant underperformance by the Shanghai Composite. Will last week’s fundamental developments really change China’s long-term relative performance? I don’t know, but I need to see more than one or two weeks of strength to be convinced.

There were many stocks that benefited from this China strength and I discussed some of those and much, much more on my weekly market recap video, “China Stocks EXPLODE Higher.” Check it out and be sure to “Like” the video and “Subscribe” to our channel.

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Iran’s Ayatollah Ali Khamenei in hiding with extra security following Hezbollah leader’s death: report
next post
Why JPMorgan Chase is prepared to sue the U.S. government over Zelle scams

Related Posts

These S&P 500 Stocks Are Poised To Outperform!

November 2, 2024

DP Trading Room: Deceptive Volume Spikes

December 24, 2024

Growth is Alive and Kicking for S&P 500

May 23, 2024

Biotechnology (IBB) Gets Silver Cross BUY Signal

May 17, 2024

Growth is Alive and Kicking for S&P 500

May 24, 2024

S&P 500 Breaking Out Again: What This Means...

July 28, 2025

Equity “Go” Trend Sees Surge in Strength as...

November 12, 2024

Is a New Market Uptrend Starting? Key Signals...

March 16, 2025

Why This S&P Support Level is SO IMPORTANT

October 9, 2024

Why Novo Nordisk’s Stock Price Recovery Makes It...

May 8, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      August 31, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      August 31, 2025
    • Epstein estate to hand over ‘birthday book’ to lawmakers, House Dem says

      August 31, 2025
    • Dyan Cannon denied White House entry after lying about her age on passport documents

      August 31, 2025
    • Israel eliminates Houthi prime minister in Yemen airstrike targeting senior government officials

      August 31, 2025
    • Sen. Bernie Sanders calls on RFK Jr. to resign following departure of CDC officials

      August 31, 2025

    Categories

    • Business (1,370)
    • Politics (4,370)
    • Stocks (1,619)
    • Uncategorized (45)
    • World News (1,363)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved