Asian stocks are pulling back and opportunity may soon be knocking.
Today we look at the stock market pullback in China / Hong Kong and highlight why continued weakness into month-end could be good for opportunistic investors.
While many view the Shanghai Composite as being “China”, many of the shares are illiquid or not heavily traded. With this in mind, I think it’s better to analyze the HSCEI or Hang Seng China Enterprises index. This Index rallied sharply from mid-August but has begun to stall and sell-off in recent days.
It’s right to watch carefully as this is exactly what i thought would happen (technically) and this could lead to stabilization near the lows and offer a decent opportunity to buy dips. While a pullback down to 8750 would be a full retracement, I think it’s right to watch for evidence of any buying above this level which, in turn, may lead to the index higher to take out 9551. Watch those lows!
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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
