I argued in favor of pending "bullish reversal" in Shanghai Index, in the last review dt 23 Oct, with anticipating strong support near 1740-1780, based on observations noted on "monthly" chart. 
The index consolidated almost exactly there (tolerance of 2-3%) in the support zone, before retaliating. Remember that the so-called 'fundamental' good new flown into the market much later, but prices have already made a 'base' near the historic support zone. Now, expect continuation of the swift up move, with 'stop' placed at 1740-1780. On the upside the upper end of the parallel channel is the 'trend' deciding factor, for the current month the value of the highest point is around 2157(say 2.2k); good if it breaks, in this month itself, else "trading" range between 2.1k-1.7k till the year end.
The index consolidated almost exactly there (tolerance of 2-3%) in the support zone, before retaliating. Remember that the so-called 'fundamental' good new flown into the market much later, but prices have already made a 'base' near the historic support zone. Now, expect continuation of the swift up move, with 'stop' placed at 1740-1780. On the upside the upper end of the parallel channel is the 'trend' deciding factor, for the current month the value of the highest point is around 2157(say 2.2k); good if it breaks, in this month itself, else "trading" range between 2.1k-1.7k till the year end.
