Shanghai Composite Views!!!

Off late the new buzzword is CHINA and what happens there. Well below is the weekly chart of Shanghai Composite(SC) and a s we can see that the price is just about hanging at important confluence of supports; the 50 and the 200 periods MA’s (see ellipse)! SC retraced exactly from the 38.2% fib drawn from all time highs to the 2008 lows!

Now take a peek at the daily chart and we see how the price tested the 200 periods MA, had a lil bounce and then broke it downwards, where as the 20 and the 50 above at 3050 (bearish crossover) hope to rebut any attempt of a reversal? And do we have a Bear flag on our hands?

Here’s my take on things; since china has been ahead of the world markets by almost two months it’s more likely we would follow suit. Secondly since what looks like a support of sorts on the weekly, maybe SC would have a lil run-up from here makin a lower high and let all the other world markets( see the post below titled world indices) touch their respective 200 periods MA’s on their weekly charts and then everybody fall in one orchestrated move!!!

Phew that’s what is called fantasizing!!! If wishes were horses and pigs could fly……………!