Shanghai Composite: Another breakout

Since the breakout above 2700, SSEC has rapidly climbed up to the upper downtrendline. In the past few sessions, there has been yet another breakout - this time above the downtrendline. Take a look at the weekly chart below. Next target is the wave A high of around 3480. However, with the weekly RSI reaching overbought, i'd await confirmation - some form of consolidation around the 3100 level + a successful retest of the line from above - before adding new positions. Horizontal support around 2900.

All the best!

Hang Seng Index: Support at 23000

HSI has been consolidating its recent rise to new rally highs. Support is at 23000. A successful retest here of the breakout, might see higher levels medium-term, towards the 27000 level.

Shanghai Composite: The Tiger Roars!

The crouching tiger, took the leap and then roared this week! Check out the volume - a stamp of classic third wave action! Broke through the 200-day MA with ease. In the very-short-term, overbought and approaching significant overhead resistance around the 3000 level. A sideways consolidation followed by a breakout would not surprise. The eventual minimum target of 3480 (the wave A high) still applies. For now, i'll be holding my medium-term positions and staying on board this chinese train.

All the best!

USD hits Support.

The above is a weekly chart of the US Dollar Index. Markets are at an interesting juncture with emerging markets leading with minor breakouts to the upside. $USD at oversold & has reached trendline support here. A successful rebound may have bearish implications for global equities in the short-term, and conversely a break below would be medium-term bullish for equities.

Initial resistance on rebound is 80, while initial support is 74.

Shanghai Composite: The Tiger Leaps!

My last post, "Shanghai Composite: Crouching Tiger" suggested an impending breakout above 2700. Today, the Tiger took the leap on high volume (+ 3.13%). I have added some long positions with a stop just below 2700. The initial target of 2900 from my last post still stands, with a potential short-medium term target of 3100. Watch out for resistance from the descending trendline.

All the best!