Shanghai Stock Index Teetering On Big Time Support Level!

Chris Kimble

Chinese stocks have failed to keep pace with the broader global markets.

In fact, the Shanghai Composite has not bested its 2007 highs.

This underperformance has seen the Shanghai Index turn lower once more in 2018.

Looking at the chart below, you can see that this major asian stock market index is testing a 13-year rising trend line support.  This price area also happens to line up with the 2015 market lows (point 1).

The long-term trend remains up, but there is reason for concern here.

The index will send a negative message to the global markets if it breaks down at point 1.  So stay tuned!

Shanghai Composite Stock Market Index

shanghai stock market index long term price support test bearish_7 august 2018

Twitter:  @KimbleCharting

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