Monday I posted Judgement Time for A-Shares.
A short-term head-and-shoulders pattern has the chartists looking for a possible test of the Shanghai Composite's 2016 low. The pattern suggests a target price of 2700, which is not far from the low of 2638. This is it for the ChiNext analog as well. Back on March 22 I said it had about 30 trading days to go and time has run out. Either this is the sell-off that will carry the Chinese markets to new lows, or the analog is busted as a predictive tool (though lower lows are still possible, the analog's timing will be shot). The low for the ChiNext is 1794.ChiNext fell 4.9 percent for the week. The analog lives for now.
In percentages, a nearly 10 percent drop in the Shanghai Composite or a drop of more than 15 percent for ChiNext are needed to usher in a new down phase of the bear market.
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