I agree that the chart shows an oversold appearance. However, if it goes back a bit more, I would be tempted to wait for the 10000 base before entering it.

David Fuller's view

This email refers to the Hong Kong China Enterprises (H-Shares) Index.

You may well be right and this is a question of tactics.  Markets can be volatile, mainly because of human emotions, and often overreact during either a euphoric or panicky period.  Tactically, you have three main choices.

1) If buying in what is often described as ‘catch a falling knife territory’, it is best to do so incrementally.

2) If holding out for a target price, you can put in a bid and hope the market successfully reaches it, which it may or may not do. 

3) Lastly, one can wait for evidence that the market has steadied before buying.  This may feel safer but if the selloff is climactic, the market may already be recovering sharply before you buy. 

There are no certainties but good judgement, disciplined money control best described as don’t over trade, and an element of luck (a will-o’-the-wisp for us all) will help.