Shanghai Composite

22 Oct 2018 ‚óŹ 04:43 AM

In my last post I gave a level of 5=1 for the chinese index and it did come close to that [box on chart] but has now reversed sharply. The fall is 5 waves and it can be considered that the Shanghai composite completed a larger 5 wave decline. then it may start wave B up a larger retracement of the fall. It would then break above the moving averages near 2700, the first key resistance. If it does so then it may also breakout of the falling channel above 2760. It opens up multiple retracement levels from 2883 to 3150 [38.2% and 61.8%]. This also provides relief to the negative sentiment in Asia as China and the trade wars have hogged the limelight. Does it indicate a surprise end to this with talks right ahead of the US mid-terms? who knows. The charts are showing resilience after a 5 wave decline and unless wave 5 is itself extended last weeks low is wave A and we start up in wave B.

shanghai 221018

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