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on the Shanghai Composite
Hope all is well. Please take a look at the Shanghai Composite's recent uptrend. Having jumped through the downtrend in April only to crash back through it a few weeks later, it has broken through it once again, and coincidentally is on a major Fibonacci retracement level, effectively forming a diverging wedge between the down trend and this. Your thoughts?"
Eoin Treacy's view Thank you for this question which I'm sure will be of interest to other subscribers. In our terminology, the Index has sustained a medium-term progression of lower rally highs since August 2009, with peaks in August, November and April. The decline from the April high near 3180 began to lose momentum from June and the rally from the early July low has broken the short-term progression of lower rally highs and unwound most of the oversold condition relative to the 200-day MA. The Index has been ranging mostly above 2600 since late July but a sustained move to new lows would be required to question medium-term recovery potential.
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