Despite good news of a truce, early last week, regarding the trade talks between US and China, the three major chinese indices under our scope showed no real progress to the upside. Technically trend remains bearish and there is no sign of a trend reversal.
Major resistance at 3300 that bulls need to break in order to gain control of the short-term trend.
Major resistance at 2700-2710. Bulls need to break above this level for a move towards 2800-2850 at least.
CHINEXT PRICE INDEX
Resistance remains strong at 1400-1420 area. As long as we trade below that level, the index is vulnerable to making new lows. Support is at 1280.
All three indices under analysis have shown some signs of strength in October and November but…..from the elliott wave perspective we are in a corrective bounce that eventually will see these indices lower once the correction is complete. Technically also there is no sign of a trend reversal only indications that bears should not be greedy and should use tight stops at recent Autumn highs.
Thank you for taking the time to catch up on my thinking.