Update: Shanghai Composite Index Poised for 2300

By Dean Rogers Technical analysis provides traders and market analysts with extremely valuable tools that can help determine future support and resistance and major turning points. A good example of this came from our recent article Ask Kase: How to Trade the Shanghai Index that was published on June 9, 2015 by Cynthia A. Kase, CMT, MFTA. Ms. Kase’s analysis lead her to call for an overdue downward correction of the Shanghai Composite Index (SSE) once resistance at 5200 was met within a +/- 50 point tolerance. SSE rose to 5178.19 on June 12, before turning lower and eventually transitioning into the bearish collapse that has transpired over the past several weeks. The market has blown through Ms. Kase’s lowest support level of 4550, below which she stated, “a much more sustained decline would commence”. She hit the nail on the head, and now, the techncials are showing us that SSE is poised for at least 2300 after a potential upward correction from 2947.94. The decline from 5178.19 forms a very clear nested wave formation that has two primary waves: 5178.19 – 3373.54 – 4184.45 (blue) and 4184.45 – 3537.36 – 4006.34 (green). Both waves project to 2300 +/- 80 … continue reading

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Source: CTRM Center

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