Shanghai Composite Talks Turkey While You Eat It

  • Posted by on November 28th, 2014 at 8:25 am

china

America celebrate the holiday of gluttony, Thanksgiving, yesterday. a day where we sit down and stuff our faces until we cannot move. Then waddle to the couch to watch football and have late night Turkey sandwiches delivered. We may take a nap in between and blame it on the word of the day, trytophan.

But while we took a day away to talk politics and religion with a bunch of uninformed relatives (including ourselves) the Chinese were getting busy in their stock market. The Shanghai Composite is in the midst of a major breakout.

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The chart above shows the weekly price action, augmented for today’s move (that would not show up until 4pm). What you see is a break out of a 3 year bottoming pattern. And this week prints a very bullish Marubozu candle. A Marubozu is when the period opens at the low and closes at the high, no pullback or dip lower. It is a sign of continual buying.

The momentum indicators are pointing higher as well, with the RSI into overbought territory. That might be good news as it could give you a short pullback before launching higher again.


 

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