With Chinese stocks & Financial Market, shows a major decline much lower than 14% from the past few weeks. This Major Decline Demonstrates a trading pattern that similar indicates to the US Crisis of 1929.
The Shanghai Composite Index has sunk much deeper than 3,200 points after it shows an immersion of 8.5 % on Monday after an index showed a downward trend of lesser than 3,726 which proved the most bad Bailout in this Historic 8 years, Many Major Analyst of Several investment Banks like Morgan Stanley, HSBC, etc has predicted the severe bottom in 2013,. That would prove a severe decline which might extend since this jump can rise up to 37 percent. The index’s moves from this March are connected with those of the Dow Jones Industrial Average in the year 1929 which incurred a heavy loss as much as 46%.
The Financial Market Power house: China Securities Finance still haven’t pulled a major support for their equity Fund. Additionally, the Chinese government may still continue to strengthen the efforts to stabilize markets and investor sentiment.
The current Markets Index, which shows a bottom-low which severally proves a bad news for them. But adding that, The Representative from CSF also added, “It’s probably the most Good News, as it shows a Sign of New investment Coming, As in Definite Cases the Current Index Low or Market Rally Shows the Artificial Movement.”
Fib Retracement Levels:
Our Analyst Says that will reassess the market once again as if the Shanghai index steeps much lower than 3,200 Marks, it might Wipe out this year profits too, If that level, which highlights the 61.8 percent Fibonacci retracement of this month High, fails to hold, then the market could decipher quickly, Most of technical analysts or Traders worldwide uses the Fibonacci ratios, based on proportions level adding to accurate Sum invested so as to predict the stock market trends.
Our Bunch of HNI investors are still concerned about the benchmark has taken the lunatic view from the real value of stocks just because of too much of government intervention, while our Team of Analyst recommends this indicator work best as it helps the Traders to choose their buy & sell signals when the market seems to be deteriorating. The Reason seems to be obvious as the Unrealistic Market intervention makes the imbalance in the supply and demand of stocks that seems to be superficial and much easier to identify,
The Market Intervention truly doesn’t seem to be in a proper Alignment & might prove the Economy Costly. The Current index of China Seems to Be Bearish, But if it Steeps much further than certainly the Index can prove bullish in a long Run for many Investors.
Date: 29th July, 2015
By: Seven Star FX Team