In the past 7 months Shanghai composite index is in the consolidation phase. If it gets above 3472 I'd give 45% chance of continuation of rally and 30% chance of rolling over at 3472. NOte if Shanghai could stay above 3472 for a couple weeks it marks the next leg higher. On the other hand if it drops to 3000 there is a 10% chance of short squeeze. I need to mention that if Shanghai breaks 3000 and stays below it for a couple days there is a 15% chance that it tanks deeply on very high volume which could mark the double dip recession.
Thursday, April 15, 2010
Shanghai Composite Index Technical Analysis (04/15/2010)
Shanghai Index Technical Analysis Chart:
In the past 7 months Shanghai composite index is in the consolidation phase. If it gets above 3472 I'd give 45% chance of continuation of rally and 30% chance of rolling over at 3472. NOte if Shanghai could stay above 3472 for a couple weeks it marks the next leg higher. On the other hand if it drops to 3000 there is a 10% chance of short squeeze. I need to mention that if Shanghai breaks 3000 and stays below it for a couple days there is a 15% chance that it tanks deeply on very high volume which could mark the double dip recession.
In the past 7 months Shanghai composite index is in the consolidation phase. If it gets above 3472 I'd give 45% chance of continuation of rally and 30% chance of rolling over at 3472. NOte if Shanghai could stay above 3472 for a couple weeks it marks the next leg higher. On the other hand if it drops to 3000 there is a 10% chance of short squeeze. I need to mention that if Shanghai breaks 3000 and stays below it for a couple days there is a 15% chance that it tanks deeply on very high volume which could mark the double dip recession.
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