Contradiction, contradiction.....

 I have not been sitting down quietly conducting my trading since last week.

I was assisting my daughter on her landscaping competition  ( dealing with plants and flowers, not  body hair ). Sending her to the event site to  take care of the plants before starting her school session. Th event only ended yesterday. Yet, we have to collect some of the plants from the site this morning.

Since I did not manage to conduct any trading activity, I have decided to type up this entry. Partly because I feel that this is necessary since the last one, because it is related. 

In my last entry on China, After thought of HKD and China indices, I have left out Shen Zhen Stock Exchange composite index (SZSE Composite ). One reason was because the chart from finance.yahoo.com have a huge gap on this index  between 2015 and 2022. As a result, I could not use it for study.

However, I have found the chart from Investing.com today. I would like to add this entry to complete the picture on China, because it is interesting and contradict the direction of SSEC.

Fig. 1 SZSE Composite Index Weekly Chart

As can be seen, there are similarities between SSEC and SZSE, both with double top and have retreated back to neckline after breakout. 

SZSE managed to climb to higher high while SSEC not. In a way, we can classify SSEC with failure swing while SZSE non-failure swing.

While SSEC seemingly retreated from the 55-week moving average, SZSE seems to be attached to 55-week moving average after stopped by the resistance. SZSE seems to be in a counter trend congestion. The bars are small and overlapping. 

While SSEC retreated to below the neckline, SZSE is for the time being supported by its neckline.

As a result, there is a possibility that SZSE on a continuation after the present congestion, compare to SSEC.

Presently I can see 3 different possibilities for SZSE:

1) Strong 55-week moving average forcing SZSE to continue its descend. As such, support for SZSE will be between 1,399 to 1,722.

2) SZSE manage to break through 55-week moving average but fail to break through the Bollinger band, as such 2,304 is an interesting level to watch out for. The support thereafter should be similar to case (1).

3) SSZSE break through 55-week moving average to fulfill its flag objective. The resistance to watch out for is between 2,430 to 2,629.

While I am negative on China, SZSE is interesting. If it continues on its up-trend, We should see China economy to last a while longer. My suspicion is that SZSE might develop the second top or head of head and shoulder since I still cannot shake my bias thought that China economy is not performing.