China A Shares Carving Out Bottom
Everything about this chart set-up tells me to expect higher prices for the Morgan Stanley China A Shares Fund (CAF), possibly much higher prices!
The enclosed powerful downtrend from November 2010 represents only the most "recent" decline from within a 5-year bear market.
The price structure has been carving out, and doing the work necessary to form a significant bottom since the end of February.
Serious momentum combustion is building that should rocket the CAF above key resistance at 19.50/75 towards a test of the 2-year down trendline, now at 21.75.
Perhaps tonight's GDP data from China will provide the bullish catalyst to initiate the upside breakout?
