China’s big decline providing a sweet entry point?

CLICK ON CHART TO ENLARGE

While the S&P 500 and many indices in the states are trading near all-time highs, the same thing can’t be said for stocks in China! Since the highs in February, the Shanghai Index (SSE) has declined nearly 25%.

Could this large percentage decline be presenting an opportunity/entry point for aggressive bargain hunters? Yes!

The decline has the SSE index testing the bottom of its 3-year trading range and 5-year rising support at (1), while momentum is now the lowest since the 2009 lows at (2).

Setting a stop just below the dual support test at (1) looks to be a nice entry point for aggressive traders open to owning hard hit assets.

Stops are very much needed at this price point, as the next key horizontal support comes into play at the 20,000 level, which is a large percentage below current prices!!!

 

All the analyst's research in the world can't help with when to enter or exit a position. The Power of the chart Pattern will. Learn how

See a Free sample of our most popular research reports here  

Receive Chris Kimble's research to your inbox, immediately after it's posted to the blog

See the latest webinar here

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM