SHCOMP ~ Snapshot TA / Bearish H&S Development (TBC) / Weekly

China's Economy is dangerously on the ropes...things have gotten so bad, CCP had to make an announcement on a Sunday night (AEST/UC+10) that they're going to intervene in their domestic market with a raft of "measures" in hopes of boosting market confidence:

- Halve stamp duty on stock trading
- Tighten pace of IPO listings
- Cut margin financing requirements
- Restrict listed companies' refinancing
- Restrict share reductions by major shareholders

My gut instinct tells me this will be a financial disaster...luckily we've got charts to tell us what's really going on.

Taking a (Snapshot TA) look, 000001 appears to be developing a Bearish H&S. Extrapolating Head-to-Neckline indicates price could be heading towards a pretty interesting Confluence Zone:

- Gap fill (weekly)
- Retrace to previous 2014 break-out (aka Return to Scene of Crime)
- Key demand/support zone
- Multi-decade trend line

Note: While chart patterns (ie H&S) are great at spotting trends, etc. it's important to focus on associated demand/supply zones & how price interacts with key levels to determine when & where to scale in/out of positions.

All (technical) signs point to SHCOMP in process of capitulating...problem with Govt interventions is it becomes a momentum play in either direction & technicals take a back seat.

We'll just have to take note of critical levels, set alerts & wait for the dust to settle..


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