[EN] China. Historic Opportunity // GaliortiTrading

2023年10月28日

The Chinese government and its central bank are starting to implement an expansionary fiscal and monetary policy with a double objective: to end capital outflows and ensure a 5% annual GDP growth.

This is a great medium-term trading opportunity in CSI300 with a great win/loss ratio (26/1). No other index in the world today has such a reward!


If we look at the monthly chart there is a large liquidity zone between 3,400-3,600 that has acted as a support/resistance zone over the last 15 years. If it is surpassed, an important bullish leg could be triggered.
Prices have a clear bullish divergence with the oscillators, or that would support the move.

https://www.tradingview.com/x/BuUtq5TS/
1 W

Since February 2021, the index has been in a medium-term downtrend but has failed to break the long-term uptrend line (it has already rested three times above it).

https://www.tradingview.com/x/TPFOvpxU/
1 D

If the index manages to overcome its short-term bullish trend line (since August) and closes the downward gap of last Thursday, October 19, it will send a strong signal of strength. Note that the oscillator chart has already broken the downtrend line.

Let's be very attentive.

Pablo G.