SSE:000001 chart mapping/analysis.
Been a while since I've published any charts on TradingView - process is a pain in the a$$ tbh & procrastination crept in while lacking TA-edge on markets + other commitments..
That said, noticed Shanghai Comp chart still notching views given current environment so thought I'd give an update.
Initial TA thesis hasn't changed...
SSE:000001 chart mapping/analysis.
Bearish H&S formation on weekly chart.
Price action already broken below multi-decade trend-line.
Pattern follows through = -29% measured move down to 78.6% Fib / retrace to 2005 breakout / gap fill (weekly) confluence zone (green box).
Iron Ore Futures coiling like a steel roll in a series of Lower Highs & Higher Lows since October 2022.
Break above 116.60 = Bullish momentum towards 134.85 (38.2% Fib Retracement)
Break below 99.40 = Bearish momentum towards 77.60 (78.6% Fib Extension)
Seasonality typically favours the Bulls running strong into end of year - we'll see if it still rings true...
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
-...
A bullish divergence with RSI has appeared on the daily relative strength chart of EEM/SPX
Also a falling wedge has broken out upwards
A period of "Relative" outperformance wrt to the S&P500 may be near for the Emerging Markets
I see a lot of interest on my Bitcoin vs U.S. indices fractals and that motivated to make more seemingly 'odd' comparisons that end up to interesting findings.
One such interesting finding is the comparison of Bitcoin (orange trend-line) to the Shanghai Stock Exchange (black trend-line). Everyone in the crypto world knows how strongly the Chinese government has...
If we look closely at what the Chinese government have been doing of late, I would say they are indeed doing a great job for the people of China. From clamping down on the 996 working culture , stopping the fan culture online and drastically reducing the amount of tuition for kids........
Living in Singapore, we are not too much different. Parents with kids...
i have two reasons for looking at the chinese stock market
1) china will be a dominant player in the future because of artificial intelligence, they are leading everyone
2) the stock markets in the west are over heating, while the chinese stock market is prime for a pump (accumulating). i can see a lot of money moving from west to east when the western markets...
As S&P500 and global indices near an all-time high, the Chinese indexes are lagging. Nonetheless, price has managed to recover from its low in May. Now price is pulling back to test the 17750 level. The current pullback resembles a bullish flag.
Here is a chart comparing the Nasdaq 100, Bitcoin, and the Shanghai Index, which is in a position to break out of its long-term downtrend line on a weekly basis. Once this long - term downtrend line breaks, it opens up a lot of upside.
The Nasdaq and Bitcoin have proven this logic in time.
Given the current state of global financial markets, the Fed's...
Looks like a double bottom forming at 16900. Price seems to be trading sideways in a narrow range between 16800 - 17800. At these levels, the Chinese index looks more attractive in terms of risk and reward. I'll look to buy between 16400 - 16900.
