Shanghai market tested the uptrend line this week. The good news is the uptrend line is still intact with the support level holding on to attacks from the bears.
However there are a few warning signs appearing on its weekly chart.
Firstly, the MACD indicator has cut down from its signal line. The indicator has stayed above its signal line since end of Nov 08.
Secondly, the +DI is about to go below the -DI line. This indicates that the uptrend may be slowing down.
The critical level to watch is the uptrend line. The index needs to stay above the uptrend line. If it closes below uptrend line, a sell down may be in the cards.
However there are a few warning signs appearing on its weekly chart.
Firstly, the MACD indicator has cut down from its signal line. The indicator has stayed above its signal line since end of Nov 08.
Secondly, the +DI is about to go below the -DI line. This indicates that the uptrend may be slowing down.
The critical level to watch is the uptrend line. The index needs to stay above the uptrend line. If it closes below uptrend line, a sell down may be in the cards.
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