Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ChiNext Index has broken out of its recent trading band upon falling through Aug 12 low of 2,578. The recent sell-off, which resulted in a breach of the 50-DMA (a solid support from mid-Aug through the beginning of this week), was underpinned by stronger volume. Tech-led declines at Wall Street may have spilled over into ChiNext over the recent few days, with today's decline in China's tech-heavy index driven by electronics and pharmaceuticals. The news that AstraZeneca's promising Covid-19 vaccine tests have been halted took their toll on sentiment, adding pressure to Asia-Pac equity space. ChiNext has looked past a recovery in Nasdaq futures, which managed to turn green, and continues to head lower, printing worst levels since early July at typing.
- Momentum indicators gesture towards scope for further losses, with next support coming up at 2,466, which represents the 38.2% Fibo retracement of the YtD range. A fall through there would open up the 100-DMA at 2,426 and the 2,400 area, where the index attempted to form a base in early July before resuming its rally. Bulls need to reclaim the 50-DMA, intersecting at the round figure of 2,700, before targeting Sep 3 high of 2,789. A penetration of the latter level would return focus to the Jul 13/YtD high of 2,896.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.