Here are two daily bar charts. The first one shows the action over the past three months of the Morgan Stanley cap weighted index of 300 stocks traded on the Shanghai and Shenhzen stock exchange. I have used this index in my previous post on Chinese markets. The second chart above this post shows the action over the past year of the Shanghai composite index which seems to be more widely followed and which certainly has more price history available for it. You can see that the two indices track one another closely. So from now on I shall base my commentary on the Shanghai composite.
In my last post on China I said that the Morgan Stanley index should drop to the 3340 level and then begin a rally to new highs. In the event the average dropped to 3200 or so and since has moved to a slightly higher high. The Shanghai composite however has not yet made a new bull market high.
I think the Shanghai composite will reach the 5400 level before another substantial break begins. Support for this index is currently at 3300.
2 comments:
Dear Carl, when you mentioned
" Shanghai composite will reach the 5400 level before another substantial break begins. Support for this index is currently at 3300. "
Above support 3300 is little confusing from the perspective that whether it could go down to the support 3300 again before resuming towards 5400 or after 54400 range is reached 33000 support pans out ?
Regards
Car,
ES Sep Futures have slice throught 1522 support. Any change in your targets?
Yul
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