Evening one and all,
In my last post on the Shanghai Stock Exchange (SSE), I showed you all why I was bearish on the Chinese market. Since then, the SSE climbed to above 2400 before falling several points to the 2300 region. A golden cross was established in that period.
Recent price action has produced a popular potential pattern: a head and shoulders. I say potential because we need a breakout to render the pattern valid. If I take the long-term picture into account, I see this pattern as an opportune time for the SSE to fall back to the long-term downtrend line (nearest general target being the 2100-2200 region). Also, this fits into my general, contrarian, bearish view on the stock market (bearing in mind the Chinese market can be a very different animal).
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