Chinese market rally continues. Where could it turn?
Interesting read on Business insider detailing influx of new investors in China that do not know how to read....got me thinking of the irrational exuberance of markets - buying because prices seems to go up without stopping. On this particular index, we are looking at a portion of the Shanghai composite - but for all intensive purposes, this represents the action of the Shanghai composite - a barometer of the stock market in China. With this in mind, we pay attention given that this index is at or nearing supply levels on the major timeframes - monthly, weekly, and daily.
The areas highlighted here on the daily chart may serve as selling points in this current strong bullish momentum. If these statistics on the common investor in china and their growing number is to be true - then a strong case builds for a short view on this market.
On another related note - what will this mean on a fundamental point of view? If China's equities market turns bearish - will there be ripple effects on other markets given an already revised down view globally?
The areas highlighted here on the daily chart may serve as selling points in this current strong bullish momentum. If these statistics on the common investor in china and their growing number is to be true - then a strong case builds for a short view on this market.
On another related note - what will this mean on a fundamental point of view? If China's equities market turns bearish - will there be ripple effects on other markets given an already revised down view globally?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.