SSE Market is Trapped in a Down Channel

Since November 12, 2011, the Shanghai Stock Exchange composite index has been trapped in a downward channel. It tried to break away last week but was not successful. However, the time seems right now for it to make a second attempt and there is a high chance that it will succeed this time.
However, it all depends on the political development in Libya and Middle East. After Tunisia set a trend in toppling the government, many Muslim countries in the region are taking the cue and engaged in anti-governmental protests. The worrying thing in China is the Jasmin Revolution. This supposedly peaceful protest to be organized last week was quickly pressed down by the Chinese authority. Quick action ensure stability. The China government is under pressure to address the the issue of income gap. There is a major disconnect between the city folks and the village peasants. The income gap is huge and potentially dangerous.
If the SSE composite can break the resistant trend line, there will be hope to turn around. Otherwise, it will trade within the channel.