China’s Shanghai Composite Index recovered above 2100, suggesting another test of 2250. 13-Week Twiggs Money Flow oscillating around zero reflects indecision typical of a broad consolidation. Breakout above 2250 would complete a reversal, but breach of 1950 remains as likely and would warn of a decline to the 2008 low of 1700*.
* Target calculation: 1950 – ( 2200 – 1950 ) = 1700
Hong Kong’s Hang Seng Index displays a large bullish ascending triangle on the monthly chart. Breakout above 24000 is more likely and would signal a primary advance, but reversal below the rising trendline would warn of a decline to 20000.
