Chinese markets finally seem to turning up the “risk”, following its policymakers’ recent announcements that hint at better economic stimulus for the nation.
The CSI 300 Index of mainland stocks rose 1.6 percent Tuesday, clocking its biggest three-day rally since mid-August 2016. China's 10-year government bond yields climbed, rebounding from their record lows.
For most part of the year, Chinese markets experienced a risk-off environment sparked by its government’s deleveraging campaign that sought to limit leverage and impose restrictions on bond trading.
But now, it seems market optimism, on the back of policy makers' latest moves:
On Monday, a State Council statement suggested that fiscal policy would be “more proactive”.
The PBOC offered to give 502 billion yuan ($74 billion) of one-year loans to banks.
PBOC’s newly released guidelines for the nation's $15 trillion asset management industry was less stringent than most people had apparently expected.
With these new promises from policymakers, risk taking in China seems to have found a new lease of life.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where CHIQ advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 23, 2024. You may want to consider a long position or call options on CHIQ as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CHIQ just turned positive on April 24, 2024. Looking at past instances where CHIQ's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
CHIQ moved above its 50-day moving average on April 22, 2024 date and that indicates a change from a downward trend to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 266 cases where CHIQ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHIQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CHIQ broke above its upper Bollinger Band on May 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category PacificAsiaexJapanStk