JICPT| Shanghai Composite Index correction may be over!
Updated
Hello everyone. Shanghai Composite index fell from previous high level of 3730 yesterday. How will the index move?
On the fundamental side, three key figures, Retail Sales y/y, Fixed Asset Investment ytd/y and Industrial Production y/y are all below the estimation. That triggered sell-off around 10 am in the early trading session.
On the technical side, the index is coming closer to 3630 where the flip and short-term MA sit. So, buyers may jump in and push the price up to retest the key level of 3730 again.
Why 3730 matters? That was the level created on the first day after Chinese New year. Since then, there was a over 10% correction for the broad index. If the level can be firmly taken over, the room to the upside will be open. But it won't be that easy, I guess two or three tries at least.
What do you think? Give me a like if you're with me. Thank you for your support.
On the fundamental side, three key figures, Retail Sales y/y, Fixed Asset Investment ytd/y and Industrial Production y/y are all below the estimation. That triggered sell-off around 10 am in the early trading session.
On the technical side, the index is coming closer to 3630 where the flip and short-term MA sit. So, buyers may jump in and push the price up to retest the key level of 3730 again.
Why 3730 matters? That was the level created on the first day after Chinese New year. Since then, there was a over 10% correction for the broad index. If the level can be firmly taken over, the room to the upside will be open. But it won't be that easy, I guess two or three tries at least.
What do you think? Give me a like if you're with me. Thank you for your support.
Note
Market is a bit weak today. It seemed to seek support around the short-term MA. flip didn't work. Looking at sectors, alcohol is favored. 
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