Daily Shanghai – Jan 22
Click charts to enlarge
Chart 1 – A small bounce on that excellent MACD signal but the upper Bollinger Band has provided very good resistance as you can see.
As I said last week this bounce has come after the RSI was showing the market is quite oversold for a while so a bounce back is no real surprise. However, the overall trend of this market is still down.
Watch for the Slow Stochastic and RSI to indicate periods of short term support and I have marked the latest on the chart.
Chart 2 – The Fibonacci Projection is working well still and we have nearly reached my long standing target of 2088.
Also as I said last week the Alexander Filter was very low so with the RSI in the above chart it was about time we had a small upward correction. This turned out to be the case. Very good signals for the very near term trends.
Chart 3 – The Wall Street correlation has come right off and the Shanghai market is not taking much notice of what it going on elsewhere in the world at the moment.
