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The Shanghai index is testing a support line that has been in place for almost 20-years at (2) in the above chart. Much of the media focus tends to be focused on Europe these days.
Even though the world would like to see Europe solve its challenges, how the Shanghai index handles this support line could be just as important.
The world is hoping the Shanghai holds onto this support line!
I see the shanghai index has pierced the 20 year support line…..are indexes are starting to sputter from their latest hopium rally….
There is also a 4.5 month old medium term Double Top with broken Neckline, with target 2066 or lower
Note: Price loves to retest Necklines
Belsha….could support be bullish? Yes! Could a falling wedge be bullish? Yes! Is it really key that these technical patterns hold right now? YES, YES & YES!
Support is support and the world needs the Shanghai to hold here or the GREAT ESCAPE really picks up speed.
Do I see the BRIC’s acting well…not at this time.
Chris
Isn’t this chart rather bullish? A falling wegde on rising support? And to the contrary, a huge upside could be expected? I admit I’m confused !
Incidentally, I yesterday looked at some ETF’s I haven’t, unfortunately, looked at for a long time, that is Vietnam, Turkey, and also a little bit maybe India. These ETFs were in a gigantic downtrend since late 2010, thus preceding the 2011 downturn by a good margin. Well, end of last year both ETFs broke out of their falling channels, are up 30-35% (in euros) since Jan 1, and are now consolodating above their 200 day MAs. Could they now be bullish early birds as they were bearish early birds 20 months (could be though that this is due to purely internal or currency issues, as Vietnam, Turkey and I believe India too were battling with heavy inflation and might have resolved that)?
I’d love to hear your opinion on this !