China Fund at Critical Juncture.
posted Apr 13, 2005 at 03:49AM
China Fund has broken down through some key price supports. Various Elliot wave counts present themselves. We could be at the start of a large C wave down which would take the chart down to the 15-17 level. Obviously this would have bearish implications for most commodities.
On the other hand the chart is oversold on the daily and has bottomed out stochastics on the weekly. Another EWA count is that we are just about to start a C wave up.
When something is oversold but refuses to bounce it is evidence of something "big" starting to happen.
Personally I think it should at the least bounce, and indeed I think it will retest prior highs, but in the end, the tape tells the tale.