A double bottom in the daily a warning flashing in the weekly
The Shanghai index is showing support at the 3870 level, with a double bottom in the Daily and support in the Weekly. However the red signs are flashing. Technically we can expect a rebound to 4224 and if strong enough to 4700.
Since we're still in negative territory and the close in the weekly is below the 34 EMA, this could act as resistance and after the rebound in the daily, this could still take another dive to the 3500 level in the following weeks.
Since we're still in negative territory and the close in the weekly is below the 34 EMA, this could act as resistance and after the rebound in the daily, this could still take another dive to the 3500 level in the following weeks.