Chinese stock market support levels are near
Updated
Here is a optimistic view of the market. There are many potential prices this market could soon bounce off for some time or even bottom on - ideally the oil price also reaches a bottom around the same time.
Support levels:
Interestingly the RSI with period 20 has right now a value of exactly 50.05, which also means a neutral trend. Current monthly price as shown by Tradingview is 3075 points.
Conclusion: If the Chinese stock market stays above 2800 points there is a potential bottom and the market is a buy. But if it falls even below 2800 points it could fall much lower. In that case I'm going to a new analysis.
P.S. A log-scaled daily chart
these support levels had influence in 2007 and 2008
Support levels:
- 2949
- 2912
- 2888
- 2849
- 2806
Interestingly the RSI with period 20 has right now a value of exactly 50.05, which also means a neutral trend. Current monthly price as shown by Tradingview is 3075 points.
Conclusion: If the Chinese stock market stays above 2800 points there is a potential bottom and the market is a buy. But if it falls even below 2800 points it could fall much lower. In that case I'm going to a new analysis.
P.S. A log-scaled daily chart
these support levels had influence in 2007 and 2008
Note
With only one day counted into the new month calculation (close of March 1st, 2016) - the month of March is now starting to look bullish for China:Note
One month later. Bespoke Investment Group writes in their blog:"Even China is Rallying!" (March 21, 2016)
bespokepremium.com/think-big-blog/even-china-is-rallying/
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