Shanghai Composite Index is testing resistance at 2300 but there is no clear breakout from the trend channel to indicate a trend change. Respect would signal a down-swing to test the lower trend channel around 2000*.
* Target calculation: 2150 – ( 2300 – 2150 ) = 2000
Hong Kong’s Hang Seng Index followed through above 20000 to confirm the breakout signaling the start of a new up-trend. Target for the initial advance is 22500*.
* Target calculation: 20000 + ( 20000 – 17500 ) = 22500