Shanghai Composite: Bouncing On Support

Shanghai Comp now sitting on support of blue channel line. A weak bounce today, followed by an almost complete retrace. Expecting an ABC style correction up over the rest of the week. Depending on the strength of the bounce, we may reach 3020 or 3050 (38% fibo retrace) as shown by the two arrows. After that i do expect a further decline in the area of 2700 with a possible breach of the lower blue line, as highlighted in this earlier post.

SSEC is facing downward pressure in the medium term.