The World is Realizing How Much China Matters Now
When the SARS outbreak happened in 2003, China’s share of the global economy was about 10%. Today, however, China accounts for double that figure (20%) while also holding the title as world’s largest manufacturer. China’s burgeoning middle class also showers money around the world, with tourists spending approximately $260 billion a year.
These economic fundamentals place China and the global economy in a precarious position: one on hand, the economy benefits from sending people back to work and restarting factory operations. On the other, restarting the economic engine risks spreading the coronavirus even further and for longer.
To underscore just how important China’s economy has become on the global stage, consider that over the last five years, the three most material sell-offs in the S&P 500 index have had ties to China. There was the yuan devaluation in 2015, followed by downside volatility connected to the US-China trade dispute in fall 2018, followed by the selling pressure we’re seeing today connected to the coronavirus. Any good investment strategy, in my view, must account for China's significant influence on the global economy.
Momentum Indicator for CHN turns negative, indicating new downward trend
CHN saw its Momentum Indicator move below the 0 level on March 12, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned negative. In of the 75 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CHN moved out of overbought territory on February 24, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 53 cases where CHN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CHN turned negative on March 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CHN broke above its upper Bollinger Band on March 05, 2025. 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.
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CHN advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 169 cases where CHN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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