Legend For Phase Chart:
1: Recovery-1: Warning
2: Accumulation-2: Distribution
3: Bullish-3: Bearish

Saturday, December 5, 2009

China Still In Bullish Phase



Shanghai Stock Index is following a cup and handle pattern that shows a long term upside breakout. The upside target is 3400 which is very near to the Friday’s closing level of 3317.

The phase chart is still showing an uptrend that re-established itself on 19 Oct 09 after dipping below its 50 day moving average.

The next resistance level is at 3400 level and it will take a lot of conviction from the bulls in order to close this level.

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