Shanghai Index: Buy the pull back.

The Shanghai Composite Index has seen a considerable rise since the start of the year, which we predicted in December (). The parabolic rise on 1D has reached past the overbought zone (RSI hitting 80.000) and as it got close to the 0.500 Fibonacci retracement level (3,015), we should start see it consolidating. The strongest candidate for a pull back however is the 0.618 level (3,150). We are willing to buy any such pull back and target the 0.786 level at 3,340.

See below how we predicted this +22% rise in December:






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