China's Shanghai Composite Index (see link below) is overextended and aching for a severe correction. If I'm mistaken I'll wear egg on my face for awhile.
As the link below is not a static picture you'll have to look back to this posting date (July 28, 2009) to see if the 3430 area was indeed in this market's reversal area.
I expect Shanghai to reverse in the next few weeks or sooner and go down from its current 3430 area to a first support level at about 2500, then bounce up, and then head south again to the 2100 level, for a total correction of about 1,300 points.
Shanghai's Bear Market Rally appears to be caught up in a frenzy fueled by outrageous optimism.
Here's a link to the chart:
http://finance.yahoo.com/q/bc?s=000001.SS&t=2y&l=on&z=m&q=l&c=
But, hey! I could be wrong. So here's an opposite view by Ee Chee Koon, chief operating officer at Singapore-based Asia Charts, who says, “Though the Shanghai Composite Index has been charging up, there is little sign that the trend is coming to an end.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajTh.rURymTs
Let's face it: what the world needs now is a flawless crystal ball.
All the best to one and all!
James Leo Donoghue
leo_donoghue@yahoo.com.au
As the link below is not a static picture you'll have to look back to this posting date (July 28, 2009) to see if the 3430 area was indeed in this market's reversal area.
I expect Shanghai to reverse in the next few weeks or sooner and go down from its current 3430 area to a first support level at about 2500, then bounce up, and then head south again to the 2100 level, for a total correction of about 1,300 points.
Shanghai's Bear Market Rally appears to be caught up in a frenzy fueled by outrageous optimism.
Here's a link to the chart:
http://finance.yahoo.com/q/bc?s=000001.SS&t=2y&l=on&z=m&q=l&c=
But, hey! I could be wrong. So here's an opposite view by Ee Chee Koon, chief operating officer at Singapore-based Asia Charts, who says, “Though the Shanghai Composite Index has been charging up, there is little sign that the trend is coming to an end.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajTh.rURymTs
Let's face it: what the world needs now is a flawless crystal ball.
All the best to one and all!
James Leo Donoghue
leo_donoghue@yahoo.com.au
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