(CercleFinance.com) – The year got off to a bad start in China where the main indices fell by -2.5% and up to -3.6% during the session for Shenzhen (-2.57% in the end to 1,907Pts, i.e. -5.1% in 2 consecutive sessions).
The reason for this is the publication of weaker than expected 'anticipated activity' figures in December in China: the manufacturing PMI fell by -Pt to 50.5 instead of progressing towards 51.7 (according to the consensus).
The 'Shenzhen Composite' index pulverized the important support of 1,950 Points (already tested on November 1, 25 and 27) and sank to around 1,890 intraday.
With this clear break, the Chinese 'tech' index also validates a triple-top below 2,130 on 8/10, 11/11 and 10/12, which foreshadows a re-test of the major support of 1,730 on April 29 2022… and perhaps the filling of the big 'gap' of 1,638 on 09/26/2024.
