Hello everyone. Shanghai Composite index has consolidated near the key zone after the massive sell-off occurred on Oct. 12th. On the chart, we can clearly see:
1. Inside bar formation: This is a sign of indecisive move. It holds until it doesn't. That day is coming soon with reference to the below point.
2. Triangle pattern: I drew a green and red line for uptrend and downtrend respectively. As the two line is going to meet each other, the index has to make decision about where to go.
On the fundamental part, 10 big banks have cut their growth forecasts of China amid mounting negative factors, e.g. disruptive floods, power cuts, indebted real estate developers, tighten regulatory on Tech sectors. However, central banks is likely to adopt loose monetary policies to spurt the growth. So the bad things may turn out to be good things for bullish stock buyers.
To summarize, I will keep my eye on the inside bar break, because it may give me a hint of where it might go. Also, loose monetary policy, like reserve requirement ratio cut, will be a strong supporter for the market. I don't think PBOC will cut its interest rate when Fed is about to taper and increase the target rate in the year-end of 2022 or 2023.
What do you think? Give me a like if you're with my view.
1. Inside bar formation: This is a sign of indecisive move. It holds until it doesn't. That day is coming soon with reference to the below point.
2. Triangle pattern: I drew a green and red line for uptrend and downtrend respectively. As the two line is going to meet each other, the index has to make decision about where to go.
On the fundamental part, 10 big banks have cut their growth forecasts of China amid mounting negative factors, e.g. disruptive floods, power cuts, indebted real estate developers, tighten regulatory on Tech sectors. However, central banks is likely to adopt loose monetary policies to spurt the growth. So the bad things may turn out to be good things for bullish stock buyers.
To summarize, I will keep my eye on the inside bar break, because it may give me a hint of where it might go. Also, loose monetary policy, like reserve requirement ratio cut, will be a strong supporter for the market. I don't think PBOC will cut its interest rate when Fed is about to taper and increase the target rate in the year-end of 2022 or 2023.
What do you think? Give me a like if you're with my view.
הערה:
The inside bar pattern continues
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