28 Feb 2013 ‚óŹ 03:57 AM

Shanghai composite completed a 5 wave decline in September that allowed for a good rally but the question remained as to whether the move up was the beginning of a new trend. The media has definitely portrayed it so. But the 2 year long decline could still be wave A of a larger decline and potentially a leading diagonal falling wedge like pattern. Thus the recent rally ending near the wave 4 high of 2450 could be wave B and the recent sell of last few days looks like an impulse down meaning the beginning of another downward phase. Till 2450 holds this should be the preferred case here, that wave C down has started. A much deeper and last phase of a long term bear market in the Shanghai composite before a long term reversal can truly occur


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