Tuesday, November 25, 2014

SSEC Shanghai Index Weekly Chart 3-Year Record Highs

The Shanghai is printing at three-year highs entering the strong resistance zone from 2011 and 2010. Price breaks out of the downward-sloping channel this summer. The blue sideways triangle patterns are about 500 points on the vertical sides. Thus, with the break out occurring from the 2050-2150 area, adding five hundo yields a target at 2550-2650. Price at the lower part of this target range now. The RSI and MACD line are long and strong wanting to see higher highs in price. The stochastics are overbot and negatively diverged and the histogram is neggie d so price should pull back to take a breather for a week or three but the expectation is then for a continued push higher into the 2550-2650 area. Price may not peak out for a few weeks forward definitely not until the RSI and MACD line goes neggie d.

The pink boxes show the ADX above the mid-20's indicating strong trends. The tumble lower through late 2011, 2012 and into 2013 was a strong down trend. Then in late 2013 the down trend petered out (ADX drops to 10-ish). From this summer, as the SSEC breaks out to the upside, the ADX jumps higher indicating that the current uptrend is strong. Marrying a strong up trend and the long and strong RSI and MACD, higher highs in price are anticipated. Overall, for the weeks and months ahead, the expectation is that the 2550-2650 resistance area should hold. As soon as the RSI and MACD develop neggie d, probably in December-January, that will identify the top. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 8:27 AM: The SSEC closed at 2567 for Tuesday. The chart is always a few hours behind. Price begins the battle in the 2550-2650 resistance zone.

Note Added 10:37 AM on Wednesday, 11/26/14: The SSEC closes at 2605 gaining another +1.5%. The battle continues at 2550-2650.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.