Major Chinese Indices At The End Of Their Down Trend?

For the last few weeks, I have been covering three major Chinese indices (SSEC, CSI300 and Chinext Price index). I have been pointing out through these last two months that despite the strong October November bounce, price action was corrective and a new lower low should be seen in all three indices. So far 2 out of the 3 indices have made new lows relative to the Autumn lows.

(Click on image to enlarge)

Only Chinext Price index did not make a lower low. Price remains, in all three charts, below the Ichimoku cloud resistance and inside the bearish channel since the start of 2018 where this downward leg has started. There are bullish RSI divergence signs implying a strong bounce could come soon so If I was short these three indices I would use a tight stop or take profits. Last month I warned what would happen if specific support levels failed to hold. The bullish scenario was never confirmed as the price did not break my resistance levels, while price broke below support.

Disclaimer: All persons and entities contributing to the content on this website, and their representatives, agents, and affiliates are not providing investment or legal advice on this website.Nor ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.