Ichimoku Market Update July 1, 2015: Is the China Stock market bearish?
Yesterday, I heard on the news over and over that the pull back in the Chinese Stock market was so severe that the bears have taken over and the bulls are no longer in control. Is this true? The charts will reveal the answer to us because that is the only place where trader’s actions are shown.
Below is the Ichimoku Daily chart for the Chinese Stock market provided by Esignal.
The daily chart shows a huge bullish trend for the market and now a major pull back is occurring. The pull back is severe but that is why they call it a major pull back. It is still a small percentage compared to the price movement upward. The major pull back support is holding at 4070. Therefore, this is still a bullish trend with a major pull back. The bears have not taken control yet. Right now, this is still a healthy pull back.
Below is the Ichimoku Weekly chart for the Chinese Stock market provided by Esignal.
The weekly chart clearly shows that we have only retrace 38.2% of the major bullish trend. A bullish trend will continue to have healthy pull backs of 38.2%. In fact, the weekly time frame is showing this is a minor pull back….not even a major pull back!
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