Shanghai Stock Exchange (SSE) : Consolidation or Reversal?

NOTE: Winston from InvestIdeas highlighted that my chart is outdated. Thanks. As of August 13, the support levels are no longer valid. SSE has break through the support.

The SSE has a huge run up since March, and more so since July.

From the Ichimoku Daily Chart, we can see that both the Tenkan sen and Kijun sen exhibits a very steep upward slope ( a sign of the strength of the bull).  You can see that it is highlighted in yellow.

As it approach end July, the bulls rally slowed down towards end July and Winston highlighted a ‘M’ formation on the chart.

It could be a possible reversal. However, the Tenkan sen has not cut the Kijun sen yet. With both Tenkan sen and Kijun sen flattening, it may suggest a consolidation period rather than a reversal.

Possible Support:  3243 (Kijun sen) and 3216 (Chikou Span).

2009Aug-Shanghai Stock Exchange-800x600

By iam802

Trend trading with Ichimoku