Chinese Stocks to Extend Slump, Mizuho Says: Technical Analysis
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Chinese stocks, as measured by the MSCI China Index, may extend a slump that has made the nation’s equities the worst-performing among the so-called BRIC nations, according to technical analysis by Mizuho Securities Asia Ltd.
The MSCI China, which mostly tracks Hong Kong-traded shares of Chinese companies, slid 6 percent yesterday to 50.12. The gauge may fall to between 36 and 45 “to complete the bear market,” Chris Roberts, a Hong Kong-based technical analyst, wrote in a Sept. 22 report. The index’s moving average convergence/divergence indicator, or MACD, had fallen below zero, which is “normally bearish,” the report said.