Downbeat moods could be spotted across stock markets in Asia-Pacific region today. Chinese equities were clear underperformers with some major indices from the country dropping as much as 1.4%. There was no major news that could significantly undermine sentiment therefore pessimism looks to be stemming from surging coronavirus Delta variant cases around the world. CHNComp index dropped over 1% today following a failed attempt of breaking above the mid-term resistance zone at 10,800 pts. A point to note is that the zone is additionally strengthened by the upper limit of a downward channel. Index broke below the 50- and 200-session moving average today. As the downtrend structure seems to be left intact, a move towards the 10,350 pts support zone cannot be ruled out. Breaking below this zone would pave the way towards psychological 10,000 pts area, that is also marked with the lower limit of the aforementioned channel.
Source: xStation5
