Chart of the day - CHNComp (08.02.2022)

Chinese stocks took a hit today amid concerns that the US may add more companies to the export control list. The US Commerce Department added 33 Chinese firms to its so-called “unverified list”, which requires US exporters to go through more procedures before shipping goods to the entities. As a result CHNComp fell over 1.50% during today session and approaches 50 SMA ( green line). Should break lower occur, downward move may accelerate towards major support at 8000 pts, which coincides with lower limit of the 1:1 structure. On the other hand, if buyers will manage to regain control, then upward impulse towards downward trendline may be launched.

CHNComp, D1 interval. Source: xStation5