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, as economic news disappointed. The continued trade war and lack of confidence in getting any traction with a near powerless Trump as not given any added spark to this depressed market, so I’m watching the low moving average for signs of a proper breakdown soon:
Japanese stocks tried vainly to fight back and despite a supportive USDJPY pair, the weekly chart of the Nikkei 225 shows a clear reversion back to the previous lows at the 21000 point level. This sets up for a break to test the yearly low at 20000 points if confidence doesnt come back soon:
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