Full technical analysis of China Stock market

Full technical analysis of China Stock market

China stock market has been the biggest topic of discussion world wide.   It has apparently affecting the US stock market and others.  As a result, we have been providing updates on a regular basis  with current support/resistances as things unfold.

Here is a detailed technical explanation on what is going on with the technical charts.

Lets start with the monthly chart provided by Esignal which is shown below. Since 2014, the China stock market has been in a bullish trend trying to retest the high 6345 created in 2007.    May and June we tried to break a major resistance at 4783 but couldn’t do it.  Instead, it decided to pull back to the first major support of 3883.  This support so far is holding based on the monthly timeframe.

2015-07-27_chinamonthly

 

Below the weekly chart provided by Esignal.   For the weekly time frame, there are two resistances.  The major resistance at 4486 and a minor at 4303.   On the last blog, we talked about how price was a minor resistance had a high probability of getting to the major resistance.   Instead, the market held the minor resistance right now and trying to get back to the support at 3883.   This is showing signs of strong bearish momentum.

2015-07-27_chinaweekly

 

Below is the daily chart provided by Esignal.   The daily is showing the same support as the weekly and monthly at 3883.  This is a multiple time frame support.    In order for the China market to try to recover, this support has to hold.   If this support does not hold, the market can go bearish to a whole new level.    Where we close at the end of this week and month is going to tell a lot in regards to the China market.

 

2015-07-27_chinadaily

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About the Author Manesh Patel