A-Shares hanging by a thread now with a huge head and shoulders breakdown forming. Neckline downward sloping which is even more bearish. Not sure if the Chinese government is going to be able to save it this time. A 50% haircut to the mid-low 20's is possible.
Quietly, ASHR entered bull market since August low, and chance is good it will break out again be the close this week. Next price target $39 - $40 region. The risk is it does not break out and begin to go down.
Though a down day, it managed to make a higher high on a weekly basis. With previous higher low, it qualified as a trend changer. MACD is still weak but I expect it to play catchup. It also needs to clear the 10 week moving average. So for now I call it a "green shoot", bullish but not certain yet.
It had a lower high last month, and a close above the red resistance will mark a higher high, which signals potential trend change. MACD needs to catch up, and also want to see a close above 10 week average.
ASHR 32.46 Bearish – 3.5-month falling wedge remains capping ASHR formed a 3.5-month falling wedge (from the 55.19 peak, June 8, 2015), continuing to cap the recent rise to 35.29 (September 21, 2015 high). With the indicators still weak, there is scope for a retest of 28.84 (August 24, 2105 low). Below there would expose the key 27.00/26.65/26.23 support zone...
Down trend. Resistance around 34. No bottom fishing until 25.
Still uncertain the direction, but RSI and MACD are in much better shape. If it can break out next week, next leg up is possible.
OBV has no local bottom yet. Expect some turbulence and be careful of short squeezing. MACD bearish. Stalk the trade and obey your rules.
Drawn in by its epic climb and lack of market access, a lot of tracking indexes were made to take advantage of China's equity market rise. The subsequent tumble hasn't played out proportionately though. For example the DB Harvest CSI 300 ETF collapsed 7.6 percent while the index only dropped 1.8%
would be a logical place for a pause, but followed by what? bounce or continuation
Any rallies to the downward trend is a good short position.
Does not look good at all at this point, though RSI oversold. 50 and 100 MA are still pointing upward. Short term rebound possible.
For either a swing trade or long term investing. But I would put a tighter stop just in case it continues to fall and goes too far below the 200 MA.
IMO, it is consolidating within a 10% (more or less) band, and this process can last a month or two. a bounce from the bottom of the band if hit, or the red support line if hit, should be purchased (my opinion).
Despite the noise and mocking on the Chinese stock Collapse, there is no sign the Chinese A Share is stopping. In fact, it has a huge spike on the A Share. The Bullish Channel is still intact. There weren't any correction on the Chinese A Share for the last 9 months. In addition, soon, the Chinese market will break the historic high of Shanghai CSI 5000. ...
Nothing broken yet, even in short term. Might be moving side way for several weeks before next leg up.
ASHR (China A share) is still consolidating, Past two consolidating took about 2 months. So needs patience for next move (up or down).