China has the world’s largest population and second largest economy, so it’s always wise to keep an eye on the Chinese economy and stock market.
Today we look at the latter, eyeing up a 10-year indecision pennant pattern on the Shanghai Composite Index.
As you can see, the lower highs (red arrows) and higher lows (green arrows) have guided this pennant pattern into an ever narrowing squeeze. Not much room left here, so we should expect a decision soon.
Will it be in the form of a breakout (higher) or breakdown (lower)?
In my humble opinion, when the world’s largest country decides its next big move, it will be important to the world! Stay tuned!
Shanghai SSE Composite Index “weekly” Chart
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to email@example.com for details to get set up.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.