Monday, March 30, 2009

Shanghai Composite Near Resistance - Weekly Chart



Weekly chart is showing the Bear Market rally in Chinese stock market is in good progress.

This last surge looks like a channel but I will assume it's an expanding Triangle which will top out around 2600 where it meets the 55-week MA and a trendline Resistance that connects 2 historic lows. 

The global markets in my view are running out of steam but here the RSI /which Wilder said is best on Weekly to Daily time frames/ is oscillating around mid levels and many would be lured to say it is quite bullish. 

Yes indeed - the trend in the expanding triangle has still some space to move to the upside, however I would be cautious or at least would protect any gains when the 2600 levels are reached.

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