SSE – Shanghai preparing for more downside?

I have something interesting to share with your which I just notice today after closer observation on the asia market’s indicies.

I have notice in particularly on Shanghai index’s price movement.

[img]http://i720.photobucket.com/albums/ww204/chartnexusforum/CNX%20Album%202/2010Jun-ShanghaiStockExchange-800×6.png[/img]

If you take away all the indicators, you will notice that SSE might be forming a descending triangle. Take note of the decreasing volume and lower highs with same lows. Hence, going forward, if SSE starts to form same low and lower high again, this descending triangle is going to be really obvious.

So what will be the implications for our local makert?

It has been known that SSE’s movement might affect HSI’s movement. And HSI’s movement can affect STI’s movement.

Hencefore, if SSE’s descending triangle formation becomes true, there could be an impact on our local market’s sentiment.

So do watchout for SSE’s key support level of 2500 level. If it breaks, it could affect STI’s movement.

So, one should not be too bullish in our current market condition.

*Disclaimer applies