Friday, January 22, 2010

Leads of the drop in the globe? (2010-01-22 CCB analysis)

The world stock markets have been dropping for a few days after China trying to curb record loan growth to cool down the overheating economy. Almost all China bank stocks dropped largely. Questions should appear: when will this crazy tumble stop and when will the stock markets be back to normal? After my analysis on ICBC (1398.HK) on 2010-01-15, today I do one more analysis on CCB (0939.HK). Actually the result is quite similar to ICBC, which showed a reverse sign and should be followed by drops.



However, the difference is, we can see the green channel in the graph beneath, the drop should be more gradual as both line is flatter than that drawn in the graph of ICBC.



From the analysis on two of the representative China banks, we can boldly make a conclusion: the China bank plate would be the one to lead the whole China market or even the globe markets to drop.

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