IvanLabrie

Shanghai Class A index: Bulls losing steam

INDEX:XGY0   Shanghai Class A Idx
The Shanghai Class A index             is showing some bearish signals at the moment.
Even then, there's still a chance to resume the daily uptrend if price marches back up above the recent 12 bar price level at 3140.86.

Ideally, we'd see a loss of bearish momentum in the next 3 bars, and then a breakout to the upside firmly closing above 3232.329 ideally, as the first precedent for higher lows.
On the other hand, to confirm bearish momentum, we'd need to see 2966.49 within the next 3 bars.

If long chinese equities, you'd consider closing partially, selling calls, moving stops in profit, to protect your profits (if any).
Sentiment has been extremely negative for equities this week, reaching a peak on Friday, so I assume a contrarian stance and expect higher highs soon, before any real correction starts.

http://invst.ly/1klu5 - A50 chart (looks more bullish , a close above 9657.5 might anticipate a strong 12.91% rally to 10880 in 2 weeks.

If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.

Cheers,

Ivan Labrie.
Comment: Bearish momentum failed to confirm. We can expect some upside here.
Comment: Building a mode lower, not too positive but still not confirming the decline. I'd reccomend either standing aside, or looking to short China ETFs with a wide stop.
Comment: Here we go, shorting USDCNH is wise now.

http://invst.ly/1lx15
Comment: Resilient here. Let's see how it evolves, might go sideways for a couple weeks.
Comment: Strong rally today, incredible.
Re: SPY lagging, maybe it was...back then there was panic surrounding China risk. Now, not so much.
Nikkei is a more useful benchmark.
Reply
ChimbOt IvanLabrie
Back then ? , it follows perfectly for the last few years
Reply
I wouldn't get too caught up on those patterns, all I'm saying.
As for the charts you linked, I disagree with the conclusion that everything will melt down now.
+2 Reply
ChimbOt IvanLabrie
I bieleve, as Shanghai index breaks down , spy will follow .
My reasoning is the high correlation for the past few years. This week the spy has followed , time will tel if it continues
+2 Reply
But it's only a down bar...one day. And Friday was even a 'key reversal' candle.
87% of retail traders are short, according to FXCM's SSI readings. We'll see higher highs first.
+1 Reply
ChimbOt IvanLabrie
Time will tell
+1 Reply
That's what I said in my post ;)

"Ideally, we'd see a loss of bearish momentum in the next 3 bars, and then a breakout to the upside firmly closing above 3232.329 ideally, as the first precedent for higher lows.
On the other hand, to confirm bearish momentum, we'd need to see 2966.49 within the next 3 bars."

If-then-else.
+1 Reply
ChimbOt IvanLabrie
Looks like Spy truly is the laggard in my chart :D, Patterns remain until they are broken
Reply
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