FTSE China A50 broke July 9 low

Today, Chinese stock market plunged again. It broke below the recent low of 11067 recorded on July 9. In fact, it was trading below 11000 right now. See Chart 1 below.


Chart 1: FTSE CHINA A50 d20150727_3.00pm (Source: investing.com)

From Chart 2 below, we can see that 11000 is more than a psychological support; It is also a strong horizontal support. We will have to wait and see whether the Chinese Plunge Protection Team can salvage the market right now.


Chart 2: FTSE CHINA A50 d20150727_3.00pm (Source: investing.com)

As expected, the call & put warrants are trading with big losses and gain. This is an arena for the die-hard or professionals where the volatility is astronomical. If FTSE CHINA A50 could not recover from 11000 mark, the put warrant prices will continue to go up. If  FTSE CHINA A50 can recover from 11000 mark, the put warrant prices will drop back sharply.


Table: CHINAA50 Call & Put Warrants as at 3.30pm