China shares is back on the way to make next market correction

China's shares fall apart, as the yuan make lower bottoms. The government-backed think tank warns of a potential financial panic. The current stock market situation in Asia is very similar to the correction of the indices in 2015. and devaluation of the yuan. Currently, sales in China are not at this colossal size, as in 2015 when the Chinese capital market lost nearly $5.2 trillion. or billions per minute.

If we look at the technical value of the Chinese shares (the main plot), we find that we have a flag formation that is activated. If the target of the flag is fulfilled, the Chinese shares and not only do not expect them to do anything good. If we weigh and the strong foundation around the commercial war, which has a very negative impact, the likelihood of execution of the figure jumps drastically. We are waiting for news about the trade relationship between the US and China, with any deepening of the problem leading to abrupt sales, and any progress in negotiations will calm investors. But I do not expect progress in the talks to increase the risk appetite.

Source: Bloomberg

Chart: Used with permission of Bloomberg Finance L.P.

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