Buy followed by a drop.The Chinese benchmark is currently reacting towards 12850 which is just below the halfway point of the previous bull-run. If price action manages to find strength above this mark it may push up again targeting previously established highs.
The zone (12850) may also catalyse an upward movement because the indice seems to be developing a final impulse of a potential inverse head and shoulder. Finding strength above this barrier will further push the price up.
As time progresses, if the price action manages to push up to the highs, between 14600-14000 may find bearish pressure which leads the indice to complete its bearish correction targeting the previous bullish breakthrough point around 12400 - 12000.
However, if the 12850 is futile, the indice may continue going down targeting the previous lows.
