Chinese stocks stormed higher in recent months, but charts indicate they may face a period of consolidation.» Read More
Starting September 2008 the Shanghai Composite Index has been steadily rising, a remarkable performance in this dismal environment.
First, the SCI stopped falling – a feat which Western markets have yet to emulate. Secondly, it's developed a consistent sideways trading pattern which is a signal of consolidation. The Shanghai market is entering the Year of the Ox, and it may well be the start of a bull year.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.