The Shanghai Composite Index’s fall below “key” technical support of 2,481 deepened losses today and sent a bearish signal to investors, according to BGC Partners Inc.
The measure tumbled 4.3 percent to 2,427.05, the steepest decline since May 17. The gauge breached a so-called “double- bottom” at 2,481, Jamie Coutts, a Singapore-based technical analyst at BGC, said in e-mailed comments. A double bottom is a chart pattern showing a drop in price, followed by a rebound and then another drop to the same price, usually indicating support at that level.
“Today’s break below a key technical level is prompting a rush of selling,” said Michael Liang, chief investment officer at Foundation Asset Management (HK) Ltd., which oversees $120 million. Shanghai Good Hope Equity Investment Management Co. President Zheng Tuo said investors “now expect shares to extend declines after the breach.” Read more
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