Shanghai A share index moved in a relatively small range last week. Low of the week is 2048 and high is 2116. Final close was at 2100. Trading volume was reduced.
In candle stick, it was a small white candle within previous bar’s range – an inside bar which may indicate change of direction. If the high of this week can be broken up, the rebound will continue and may challenge next resistance at 2160-2180 ( 20 day moving average and 38.2% retracement).
Again, we need to see the index to overcome 2262 and close above it or the overall trend for the index will remain bearish (target 1600).
Outlook Next week
Sidewalk with upper bound up to 2180. Bearish view maintained unless index can close above 2260.
2048 – Week low
2116 – Last week high
2160 – 20 days moving average
2180 – 38.2% retracement of wave 5-i to wave 5-iii, 20 days moving average