SSE Shanghai Composite W1 topped w/ a diamond? W2 coming

1 Jul 2022

This China index confirmed its completion of ABC when lockdown ended & their economy resumes. It has risen so much from the ABC correction low of 2888 & we may see wave 1 topping out with a diamond reversal pattern. As seen in the past 2 times shown in chart, a diamond can be either a reversal or continuation pattern so proceed with caution.
Reasons why I see this as a reversal:
1) index has already risen 500 points (2888 to 3388 completes the 5 sub-waves of wave 1) without any major retracement.
2) price was rejected exactly at wma 50 & an anchored VWAP from 3300 bottom of July 2021
3) price was rejected at the 2015 red trendline
4) price has reached the 1.272 FIB retracement of the most recent leg down (an ideal spot for abc zigzag retracements)
The 2 most probable supports (the 2 yellow zones) for the wave 2 correction are:
1) the 0.383 FIB near the 3100 to 3200 pivot zone
2) the 0.618 zone near 3100
If wave 2 is shallow, then the future wave 4 may be a deeper correction like 61.8% or 78.6%.
Not trading advice