Declining 13-week Twiggs Money Flow (not shown) warns of long-term selling pressure on China’s Shanghai Composite Index, but the daily chart shows medium-term buying pressure. The index is currently testing 2080 on Monday, after the lunar new year last week, but the primary trend remains down. Respect of resistance at 2120 would reinforce this. Breach of support at 1950 is unlikely at present, but would test the 2008 low of 1700*.
* Target calculation: 1950 – ( 2200 – 1950 ) = 1700