Buy China Now

05/24/2010 9:06 am EST


Thomas Aspray

, Professional Trader & Analyst

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The bearish sentiment on stocks is high and hardly anyone is bullish on the Chinese market. The Shanghai A Share Index was up sharply on Monday and volume was heavy. Technically, the evidence suggests we may be close to a low as the Index has retraced 50% of the rally from the 2008 lows. This coincides with a test of the 100% projection target at 2644 on Friday, which is the level where the decline from point c to d was equal to the decline from point a to b. A break of 2600 would be negative.

Tom Aspray, professional trader and analyst, serves as video content editor for The views expressed here are his own.

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