Category: Money Tips Date: 2007-03-19
?The current rapid rise in the price bubble is forming. Index may fall to 2100 points, while still maintaining long-term upward trend.
?index maintained its strong upward trend in the same time, it may fall to 2360 points, 2200 points, or even 2100 points.
?Because of the strong long-term trends, many investors will ignore these callbacks.
About the Author: Daryl Guppy (DarylGuppy) enjoys an international reputation in equity investments technical analysis guru, Australian full-time traders, the International Association of technical analysis and technical analysis in Australia and Singapore Association. Author of "trend trading", "trading strategy", "better deal" and other works.
Index running on GMMA (Guppy moving average line) short-term group in the vicinity, traders are still bullish on the market. Traders bullish on the Shanghai index's long-term trend, but it always paid attention to the possibility of market correction, they want to protect their gains. Changes in short-term upward trend is difficult to determine because, from start to rise in August 2006, this trend can not be used to define a single trend line.
Price bubble is forming
This is crucial, because it means that there is no simple way to help traders used to determine the index of the callback is an upward trend in the normal situation, or the beginning of the trend to change. This makes it more difficult to grasp the current trends. The current rapid rise in the price bubble is forming. Index may fall to 2100 points, while still maintaining long-term upward trend.
GMMA indicators show a rising trend is very strong. A long-term group showed divergent-like, short-term group was in a few months the state has been also showed divergent. This shows that the active trading of reduced, indicating short-term investors to the market confidence in and therefore I reduced the transactions. They are no longer in order to obtain short-term gains and immediately sell the stock, but buy stocks and hold for several months.
Short-term group and the degree of long-term group divergence illustrates the relationship between the two. At present two sets of averages are basically at the parallel state, which is consistent with the degree of divergence.
Concerned about the resistance and support areas
Many signals have shown a strong bull run. So, why investors are also concerned about the trend of weakening it? Traders enjoy the current trends in access to benefits, but also want to protect their gains. Protection means that investors must be vigilant to change the direction of trends. A very strong trend to change direction quickly. From the Shanghai index's long-term charts, you can see that in June 1999, June 2001, in April 2004 the trend of rapid change.
强势趋势并不能有助于我们为指数设定一个新的目标位? 2100 points of the important historical resistance and the 2245 Office of the psychologically important points have been crossed. Have not yet begun to take shape current chart pattern, so we can not determine the index of the short-term target.
Solution is concerned about the small resistance and support areas of regional development. They reflected on the chart at 2200 points, 2360 points, F-region and G-region is relatively weak suspension of regional or consolidation of the region, the index had in the recent upward trend in these areas be suspended. Up in the index, they may develop into a support area. They also are warning of a small area. Index callback to 2360 points, the trend has changed the nature of the indicative signal. These small changes in informed traders, the need for more careful observation, to confirm whether the trend is still strong.
This is a very strong trend in support. Index maintained its strong upward trend in the same time, it may fall to 2360 points, 2200 points, or even 2100 points. Because of the strong long-term trends, many investors will ignore these callbacks, even if the index fell to 2100 points. Investors taking advantage of market activity is high near the point of sale, then the index rebounded from a long-term support of the Regional Office to buy. Investors use the investment was a very positive way. ( "Red Week" Articles Special Advisor Daryl Guppy)
