China Markets: Same Pattern As 2007-2008
DAYTRADE PROFIT | Jul 06, 2015 11:23AM ET
Shanghai shares closed down nearly six percent Friday, having lost almost 30 percent from the pick on June 15,200 points.
China's government relaxing rules on margin trading have failed to arrest the declines; margin loans have increased more than fivefold in a year to 2.2 trillion yuan ($350 billion). China's securities regulator has pledged to crack down on market manipulation after rumors that foreign short-sellers were behind recent share price plunges.
We see all the time that china markets has no natural behavior like other markets, and thus, the government constantly attempts to intervene and prop up the bubble.
From the technical view: the support area stays on 3400 points, 3850 points are important level (high vol), resistance level at 4200 points - break above will lead the index higher, if it’s the same situation as 2007-2008, so I'm expecting more soaring before the collapse.
Shanghai Index Charts
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