Here is a optimistic view of the market. There are many potential prices this market could soon bounce off for some time or even bottom on - ideally the oil price also reaches a bottom around the same time.
Support levels:
Interestingly the RSI with period 20 has right now a value of exactly 50.05, which also means a neutral trend. Current monthly price as shown by Tradingview is 3075 points.
Conclusion: If the Chinese stock market stays above 2800 points there is a potential bottom and the market is a buy. But if it falls even below 2800 points it could fall much lower. In that case I'm going to a new analysis.
P.S. A log-scaled daily chart
these support levels had influence in 2007 and 2008
Support levels:
- 2949
- 2912
- 2888
- 2849
- 2806
Interestingly the RSI with period 20 has right now a value of exactly 50.05, which also means a neutral trend. Current monthly price as shown by Tradingview is 3075 points.
Conclusion: If the Chinese stock market stays above 2800 points there is a potential bottom and the market is a buy. But if it falls even below 2800 points it could fall much lower. In that case I'm going to a new analysis.
P.S. A log-scaled daily chart
these support levels had influence in 2007 and 2008
Note
With only one day counted into the new month calculation (close of March 1st, 2016) - the month of March is now starting to look bullish for China:Note
One month later. Bespoke Investment Group writes in their blog:"Even China is Rallying!" (March 21, 2016)
bespokepremium.com/think-big-blog/even-china-is-rallying/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.