Shanghai Composite Index : Needs to breakout above 2940
March 1, 2011 Leave a comment
The Shanghai Composite Index (SSEC) is close to the key resistance noted on Sunday at 2940. However, much like the Thai market, there is a lack of conviction and volume to propel a breakout move just yet, so even though it’s very close for both markets (1000 for the SET), it seems wise to wait for the fact in terms of adding to ones swing trade account. For now short term trading remains the best strategy, and even then on limited exposure.
Watch 2940 on Wednesday for the SSEC, because a failure to seriously challenge it will likely result in a pullback to 2880 or so.
A successful breakout above 2940 on strong buying places 3120-3180 as our target……with the SET likely to hit 1080-1088 if indeed the main China index passes this stubborn resistance.