2850 next level for Shanghai Composite SSEC
I discussed the fight for Shanghai Composite between a 7-year historical level and a 7-month trend line previously. This was the chart we looked at last week.
I still think that there are more losses – this was reinforced by Monday’s market breaking action. I don’t have high opinion of trend lines – horizontal levels are more reliable – so I think this trend line will break. That low of 2850 (August 2015, ‘x’ marks the spot) should be tested as well and it is a more interesting level.
So here we are.
In my opinion, 2850 is now inevitable.