Thursday, February 05, 2009

Shanghai Index Update



It's been awhile since I've written about the Shanghai Index so I figured I'd spend a few moments updating what this market has done since my last post. Back on November 11th, I posted my reasons as to why I thought the Shanghai Index has bottomed and since then the market has risen substantially. Today this index made a 15 week high after rallying strongly over the past few trading sessions.

My reasons for being bullish on this Index back in November were purely technical and I literally was able to identified the bottom in real time and posted about it here on this blog. For those of you who are curious as to how I used technical indicators to identify the bottom can read that original post by clicking here.

Technical analysis does work but it takes many years of studying countless charts and learning which trading methods fit your personality. Nothing works 100% of the time but if you learn to read the indicators correctly, you can tilt the odds in your favor and in the long-run be successful. Don't give up.

1 comment:

Anonymous said...

Kevin,

What's the target of the current rally. I think 200MA will not cap the move, instead 2900-3000 will be my target for this run. What do you think? Thanks!

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