Shanghai A share index weekly update (2013-07-05) – Rebound in a flat angle.

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).

 

shia2013-07-05_week

Week Chart

 

shia2013-07-05_day

Day Chart

 

Outlook Next week

Sidewalk with upper bound up to 2180. Bearish view maintained unless index can close above 2260.

 

Support

2048 – Week low

 

Resistance

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

3 thoughts on “Shanghai A share index weekly update (2013-07-05) – Rebound in a flat angle.

  1. Daisidoi san, I read the monthly chart and daily chart of Shanghai composite index. I discover there is a double top appeared on (14-mar-2012 and 18-Feb-20130) daily chart and another one 31-07-2009 and 30-11-2010. Coincidently , both target position is 1425. A break lower than the lowest point in Nov-2008 (1678.857). It seems a strong signal that market black hand’s expectation. Thereafter, I will assume it is a reverse hand and shoulder to boost .

  2. I notice that your mentioned target (14xx) for Shanghai composite index is also a harmonic pattern – alternate bullish bat D point target, at which it could be the true bottom. It would be equivalent to 15xx for Shanghai A share index

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