Shanghai Composite Index : Next supports at 2650 then 2600
July 25, 2011 Leave a comment
The main China market was looking quite positive a few weeks ago, but once again – much like Vietnam’s VN Index, it has fallen heavily and should dip further before a technical rebound. We are looking for 2650 to temporarily fail, with a pullback to 2600 or a few points lower. If this occurs Tuesday, which is entirely possible, a snap rebound to coincide with the US government finally raising their debt ceiling could be on offer.
Lower supports are seen at 2560 and 2520. On a longer term view, when the market finally reverses and crosses 3000 on a weekly basis it will be very interesting, but for now the rebound target (given it does turn around as forecast above from just below 2600) will be just 2770-2780.
For those who follow the VN Index, we are looking at a move down to 400, possibly 390-392 this week. It is currently at 409 with a recent low (May) of 386