China stock markets are trending up consistently in a bull trend manner. It has also surpassed its 52week high though technically, it has yet to confirm if it is back into the bull mode or not. For that it would have to give a sustainable close above the horizontal red line given at 3368 levels in the chart below.
chart: quote.com
Daily and weekly momentum indicators are diverging very positively and the moving averages of 50 and 200days have been left behind far back. At the same time the prices are in overbought zone for quite some time, implying that a correction is due in this market. However the horizontal red line at the level of 2525 holds the key for the uptrend. A close below here would be an indication of end to the uptrend. But so far there is no negativity visible in short to medium term. 2700 levels also is yet another strong support for this index.
Also click here for a related story on Bloomberg.
