Bounce in the Orient
Written By: Ailun Zhan Stock Forum ID: FirstConsul
The Shanghai index almost touched the 50 day moving average today, with that being the low for the day, and bounced off the lows. Volume was higher than the last two days. The Shanghai Index is over 10% from peak. Today is also a bullish candlestick, with the closing being higher than yesterday’s high. A bullish engulfing, as Steve Nison would say. However, these are all short term and imprecise/improbable characteristics, downside remains open as the markets are “fairly valued.” Market breadth has been positive in the past few days as advancers outpaced decliners. Overall, this may be a bull signal, though we need further confirmation.
Finally, the 2750 bearish post last week was posted during the noon here, but it was approved to be posted after the market closed around 2600.
