By Chris Becker
Looking at Chinese stocks first, where last week saw the Shanghai Composite again fail to stabilise above tentative support at the 2600 point level, but at least there hasn’t been any new lows. The weekend news of a potential truce in the trade war between America may give some added spark to this depressed market, but I’m not too sure:
Japanese stocks have fought back strongly with a more accommodative BOJ possibly helping out, with the weekly chart of the Nikkei 225 showing a lovely bullish engulfing candle.This move off the tentative weekly trend line from the February low fills in the last month of selling so is very positive, but can it be sustained going into the Xmas trading session as Yen remains somewhat strong. Price is not yet above the high moving average level, so I’m calling this a swing play only for now:
