Now is not the time to put money into the Shanghai Composite Index as the Chinese stock market looks set to fall for the next several months, Robin Griffiths, technical strategist from Cazenove Capital, told CNBC Monday.
"I think in several months time there will be a jolly-good buying opportunity when the short term on the chart will be back in step with the longer-term story of the market place," Griffiths said.
"Now is not the right moment to plunge into the market," he added.
The index suffered a major setback in July and August of 2009 and plunged and has struggled to regain the losses. The period of weakness for Shanghai stocks isn't over, according to Griffiths.
Even though the economic fundamentals of China remain strong, that doesn't mean the country's stocks are guaranteed an easy ride, Griffiths pointed out.
"One of the mistakes that many people make is they get the correct story about an economy and assume that the stock market will do the same thing and that is almost never the case," he said.
"The stock market got ahead of itself and became extraordinarily expensive, it's actually been falling since July of last year," he added.
- Watch the full interview with Robin Griffiths above.
For the Investor: