It's obvious we are looking at a equity bubble in China. I'm not worried where this goes, I'm more interested in where this ends. I want to be on the put side of this ETF. I have most likely missed 2/3 of this price move. Volatility and price velocity will be much greater on the downside, and more money can be made when the bubble burst.
Symmetrical Lines In this chart example I'm focused on large impulsive symmetrical moves on the downside. Both moves on the downside had similar angles. I marked these previous downward moves and added them to where Chinese ETF FXI brokeout.
Timing the Bust
I'm expecting the bubble to top somewhere between July 13 and August 28 (noted vertical line alarms on chart).
Pattern: Bump and Run
Price Trends
China Bubble Burst is Collateral Damage Around the World
FXI had 5 stages up during 2005 - 2007 bull run, and each run gave about 50% back. Right now it seems it had 2 runs already, and 1st run gave 50% back. I suspect the current run (may just ended, may give back 50% as well). Uncertain if more runs are coming but I tend to believe it SHOULD. So pay attention to the current pullback - it MAY NOT be over, but once it does, it MIGHT BE a WONDERFUL buying opportunity (around $45?). Note this is highly speculative in nature.
A-shot
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Speculative, but a nice observation!
jangseohee
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the blue zone consolidation looks similar to those in 2006??
QuantitativeExhaustion
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Still you hesitate. Why are you not a buyer of Shanghai Index?
jangseohee
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wait for retracement
jangseohee
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LOLz, yeah
jangseohee
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that is only a baseless projection, does it really repeat? ^_^
QuantitativeExhaustion
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So are all channel chart proposals baseless projections?