$China Stock market continues to go higher silently
Weekly is the weekly chart provided by eSignal. June 2015, the China peaked at 5410. Afterwards, the market went down drastically all the way to Jan 2016 where it bottomed at 2768. That was a drastic move down in a short amount of time.
After it bottomed, the market has slowly been moving up.
Last month, we talked about a bullish setup trade at 3515 going to the resistance of 3773.00. Here is the chart from the last article.
The breakout triggered now and it meets our trading plan requirements with money management and technical analysis. Since this is a weekly chart, this will be a long term positionl
I zoomed out to show $Ichimoku and $Elliott Wave. We could also put $Fibonacci too but the chart would look cluttered. The value of 3773 which is our target on the trade is the 38.2% Fib retracement for the Fib traders.
At this point, the resistance that was broke at 3515 is holding nicely. It was test once and held and now the market is slowly proceeding to the next resistance level of 3773.00. Here is the daily chart:
Once we reach the next resistance, we will evaluate to determine to get out or going into “preserve mode”. Preserve mode is where we take 50-75% positions off and tighten our stop. It is our money management to make sure we do not go “round trip”.
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