We have been following the Chinese banks lately, having called their demise about a month ago. They all had a huge jump on Friday, creating an upside gap.
The strangest chart I have seen, in terms of our PULSE INDICATOR, is the Agricultural Bank of China (1288. HK). Note the absolutely ‘dead pulse‘ since late February. The gap-up on Friday did nudge the CGTS indicator up, suggesting a bottom. But the other bank stocks look even worse than this one.
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The Bank of China (3988.HK) also looks bad; and the CGTS looks even more likely to continue down.
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The HSI, Hang-Seng, Hong Kong Index, shows a series of up-gap islands during this decline, that all closed as prices headed lower. It also has shown as absolute lack of a pulse over the last two months.
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